web.lib.aalto.fi · 2 3 The HYY Group is a multibusiness, international corporate group in the...
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ANNUAL REPORT 2 OOO HYY GROUP ANNUAL REPORT 2 OOO
Transcript of web.lib.aalto.fi · 2 3 The HYY Group is a multibusiness, international corporate group in the...
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The HYY Group is a multibusiness, international
corporate group in the service sector.
The Group is active in the real estate, travel, restaurant and other businesses.
Its Travel Group has business locations in seven countries.
The other divisions operate in Finland.
The HYY Group comprises the real estate owned
by the Student Union of the University of Helsinki (HYY) and HYY Group Ltd,
which is owned by the Union, plus the companies in which
it has a majority holding.
The HYY Group’s financial result for 2001 will be made public in March 2002. The 2001 Annual Report will be completed at the beginning of May 2002.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 2
4 5
Operations involving commer-cial premises, plus the mainte-nance of premises in support of the Student Union’s mission.
A company handling the man-agement, leasing out and main-tenance of HYY's properties.The company owns individualinvestment suites.
I N T R O D U CT I O N TO T H E H Y Y G R O U P ’ S O P E R AT I O N S , 1 JA N . 2 0 0 1
5%
88%
6%
1%
HYY Real Estate
Kaivopiha Ltd
REAL ESTATE DIVISION
TRAVEL GROUP
RESTAURANTS
OTHER COMPANIES
The City Centre Property in the heart of Helsinki and theLeppäsuo Property in theKamppi district of Helsinki.
Business location: Helsinki.Investment suites in Finland.
Field of business OperationsUnit Location
Share of the Group’snet sales:
University PressFinland Ltd
Oy AcademicaHotels Ltd
Oy UniCard Ab
Oy UniCafe Ab
Oy VanhaYlioppilastalo Ab
KILROY travelssubgroup
Publisher of literature on thehumanities, social sciences andtechnology.
A company engaged in thesummer hotel business.
A company engaged in smartcard operations.
Publishing housesGaudeamus and Otatieto,Helsinki.
A summer hotel in theKamppi district of Helsinki.
Serves students and universitycommunities in the HelsinkiMetropolitan Area.
A restaurant chain offeringlunch, café, catering and take-away services. Its main customergroups are university studentsand staff.
A company providing restau-rant and café services andentertainment events.
23 restaurants in Helsinki.
Activities at the Old StudentHouse in Helsinki.
A major European student and youth travel agency.
Business locations in Finland (6), Sweden (12),Norway (9), Denmark (13),the Netherlands (2),Germany (5) and Spain (1).
66%
40%
-5%
-1%
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
*) profit before taxes and extraordinary items
5
6
6
7
8
10
12
14
16
19
22
24
27
33
34
36
37
50
50
51
51
52
53
56
59
C O N T E N T S
Introduction to the HYY Group’s operations
2000 in brief
Organization chart
The ground rules of the Group’s owner
Review by the President and CEO
Key indicators
Information on personnel
The Group’s parent company, HYY Group Ltd
Real Estate Division
Travel Group
Restaurants
Other companies
Financial statements 2000
Annual report of the Board of Directors
Income statement
Balance sheet
Cash flow statement
Notes to the financial statements
Signatures
Statement by the Supervisory Board
Auditors’ report
Auditors and the Auditing Committee
The HYY Group and the environment
Administration and management
Business locations
Formulas for the indicators
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 4
4 5
Operations involving commer-cial premises, plus the mainte-nance of premises in support of the Student Union’s mission.
A company handling the man-agement, leasing out and main-tenance of HYY's properties.The company owns individualinvestment suites.
I N T R O D U CT I O N TO T H E H Y Y G R O U P ’ S O P E R AT I O N S , 1 JA N . 2 0 0 1
5%
88%
6%
1%
HYY Real Estate
Kaivopiha Ltd
REAL ESTATE DIVISION
TRAVEL GROUP
RESTAURANTS
OTHER COMPANIES
The City Centre Property in the heart of Helsinki and theLeppäsuo Property in theKamppi district of Helsinki.
Business location: Helsinki.Investment suites in Finland.
Field of business OperationsUnit Location
Share of the Group’snet sales:
University PressFinland Ltd
Oy AcademicaHotels Ltd
Oy UniCard Ab
Oy UniCafe Ab
Oy VanhaYlioppilastalo Ab
KILROY travelssubgroup
Publisher of literature on thehumanities, social sciences andtechnology.
A company engaged in thesummer hotel business.
A company engaged in smartcard operations.
Publishing housesGaudeamus and Otatieto,Helsinki.
A summer hotel in theKamppi district of Helsinki.
Serves students and universitycommunities in the HelsinkiMetropolitan Area.
A restaurant chain offeringlunch, café, catering and take-away services. Its main customergroups are university studentsand staff.
A company providing restau-rant and café services andentertainment events.
23 restaurants in Helsinki.
Activities at the Old StudentHouse in Helsinki.
A major European student and youth travel agency.
Business locations in Finland (6), Sweden (12),Norway (9), Denmark (13),the Netherlands (2),Germany (5) and Spain (1).
66%
40%
-5%
-1%
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
Share of the Group’snet sales:
Share of the Group’sresult*):
*) profit before taxes and extraordinary items
5
6
6
7
8
10
12
14
16
19
22
24
27
33
34
36
37
50
50
51
51
52
53
56
59
C O N T E N T S
Introduction to the HYY Group’s operations
2000 in brief
Organization chart
The ground rules of the Group’s owner
Review by the President and CEO
Key indicators
Information on personnel
The Group’s parent company, HYY Group Ltd
Real Estate Division
Travel Group
Restaurants
Other companies
Financial statements 2000
Annual report of the Board of Directors
Income statement
Balance sheet
Cash flow statement
Notes to the financial statements
Signatures
Statement by the Supervisory Board
Auditors’ report
Auditors and the Auditing Committee
The HYY Group and the environment
Administration and management
Business locations
Formulas for the indicators
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 4
6 7
M A NAG E M E N T A N D M A I N T E NA N C E O F T H ESTU DE NT U N ION’S A S S E T SThe general premise for the owner-ship of business operations by theStudent Union of the University ofHelsinki is to provide financial sup-port for the performance of the realduties of the Student Union, as speci-fied in the regulations of the Union.Another ground for ownership mayalso be the improvement and mainte-nance of essential services for themembers of the Union if it can beshown that this makes it possible toachieve benefits compared with whatis available on the open market.
The general aim of ownership is tomanage the property of the StudentUnion both safely and profitably, so as to safeguard the opportunitiesavailable to future generations ofmembers. The purpose of businessactivities is, in all circumstances, toachieve higher profits in the long termthan would be possible with risk-freeinvestments. The maximum risk-takingcapacity of the owner’s business oper-ations is defined conservatively, sothat the ability of the Student Unionof the University of Helsinki to handleits basic duties will not be jeopard-ized under any circumstances.
G E N E R A L P R I N C I P L E S OF B US I N E SS OPE RATION SBusiness and investment activitiesThe Group engages in business andinvestment activities with a long-termperspective, taking moderate risks,employing profit targets which are setfor each division, and complying withbusiness practices that are ethical andenvironmentally responsible.
Investment-driven shareholdingsThe company can, above and beyondits own business operations, act on
an investment-driven basis as a majoror influential shareholder (associatedcompanies, influenced companies) in businesses that fit in with theGroup’s values.
Net sales and net profitThe Group has no need to boost netsales as an end in itself. Net profit andthe cash flow from operations are moreimportant than net sales.
Critical massThe business divisions must be appro-priately small or large for their field.The critical factor for growth, if any, is to reach and maintain the criticalmass required for successful operations.
ManagementThe Group management aims toharmonize the missions and limitationsset and/or approved by the owner, thestrategic efforts based on the businessdivisions’ requirements for successfuloperations, the learning capacity of theworking community, and individuals’commitment to change.
Integration of decision-makingThe traditional, close-knit integrationof decision-making by the owner and the Group management is bothaccepted and utilized. The ability forrapid decision-making is essential forsuccessful business, and this is main-tained by anticipating developmentand forecasting future scenarios: by preparing in advance for the riskframework and Board authorizations.
Synergy benefits of ownershipThe Group’s communications and mar-keting make effective use of opportuni-ties for cooperation with the StudentUnion and of the positive impressionthat comes about from seeing the StudentUnion and the Group as being part ofthe same entity.
Conservative risk-takingThe Group’s business divisions andunits are conservative in taking finan-cial risks; this must not, however, leadto passivity. Companies that do welland generate value added for theirowner take an active approach to theirbusiness operations and their improve-ment. The Group accepts the occasionallosses that may result from dynamicbusiness operations if these losses areproportionate to the gains made overan agreed period of time, and if theyare appropriate to the risk-taking facilityof the unit in question.
Taking the environmentalperspective into consideration The Group is mindful of the environ-mental impact of its operations. TheGroup employs a system for the man-agement of environmental matters. Theimplementation of this environmentalprogramme is monitored by means ofan ecological accounting system and an environmental management system.
Social responsibilityThe Group takes the social impacts,both interpersonal and societal, of itsoperations into consideration. TheGroup realizes the principles of socialresponsibility by means such as seek-ing to establish a good working envi-ronment and by promoting the use ofethically sound products such as “fairtrade” products (which are boughtfrom small-scale producers).
Distribution of profitsWhen the Group decides on the distri-bution of profits, it takes into accountthe liquidity of the Group or unit, aswell as the need to safeguard futureoperations. No profit is distributed onthe basis of the unrealized capitalreturn of the Real Estate Division, asthis represents the prime risk buffer ofthe entire Group.
T H E G R O U N D R U L E S O F T H E G R O U P ’ S OW N E R2 0 0 0 I N B R I E F
O R GA N I Z AT I O N C H A RT, 1 JA N UA RY 2 0 0 1
• Net sales grew by 5% and were FIM 1.4 billion. Growth was primarily attributable to KILROY travels.
• Profit before extraordinary items and taxes was FIM 39 million. The overall result was FIM 30 million.
• Gross investments amounted to FIM 40 million.
• Return on investment was 18.8%; including capital gains from investments, the figure is 20.2%.
• Capital return was 25.8%; including capital gains from investments, the figure is 28.9%.
• The equity ratio exclusive of revaluations was 25.9%; including the potential revaluation of land areas allowed by the Accounting Act, the figure is 50.3%.
• Total assets were FIM 574 million. The positive difference between the balance sheet values and market values of real estate included in fixed assets was FIM 813 million.
• Proposed dividends amounted to FIM 13.5 million.
Real Estate Fundsof HYY
(parent corporationof the Group)
HYY Group Ltd
HYY Real Estate Kaivopiha Ltd
KILROY travelsInternational A/S
Subsidiariesin the Nordic countries,
Germany, the Netherlandsand Spain
Oy UniCafe Ab
University PressFinland Ltd
Real Estate Division
Travel Group
Other companies
RestaurantsOy UniCard Ab
Oy VanhaYlioppilastalo Ab
Oy AcademicaHotels Ltd
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 6
6 7
M A NAG E M E N T A N D M A I N T E NA N C E O F T H ESTU DE NT U N ION’S A S S E T SThe general premise for the owner-ship of business operations by theStudent Union of the University ofHelsinki is to provide financial sup-port for the performance of the realduties of the Student Union, as speci-fied in the regulations of the Union.Another ground for ownership mayalso be the improvement and mainte-nance of essential services for themembers of the Union if it can beshown that this makes it possible toachieve benefits compared with whatis available on the open market.
The general aim of ownership is tomanage the property of the StudentUnion both safely and profitably, so as to safeguard the opportunitiesavailable to future generations ofmembers. The purpose of businessactivities is, in all circumstances, toachieve higher profits in the long termthan would be possible with risk-freeinvestments. The maximum risk-takingcapacity of the owner’s business oper-ations is defined conservatively, sothat the ability of the Student Unionof the University of Helsinki to handleits basic duties will not be jeopard-ized under any circumstances.
G E N E R A L P R I N C I P L E S OF B US I N E SS OPE RATION SBusiness and investment activitiesThe Group engages in business andinvestment activities with a long-termperspective, taking moderate risks,employing profit targets which are setfor each division, and complying withbusiness practices that are ethical andenvironmentally responsible.
Investment-driven shareholdingsThe company can, above and beyondits own business operations, act on
an investment-driven basis as a majoror influential shareholder (associatedcompanies, influenced companies) in businesses that fit in with theGroup’s values.
Net sales and net profitThe Group has no need to boost netsales as an end in itself. Net profit andthe cash flow from operations are moreimportant than net sales.
Critical massThe business divisions must be appro-priately small or large for their field.The critical factor for growth, if any, is to reach and maintain the criticalmass required for successful operations.
ManagementThe Group management aims toharmonize the missions and limitationsset and/or approved by the owner, thestrategic efforts based on the businessdivisions’ requirements for successfuloperations, the learning capacity of theworking community, and individuals’commitment to change.
Integration of decision-makingThe traditional, close-knit integrationof decision-making by the owner and the Group management is bothaccepted and utilized. The ability forrapid decision-making is essential forsuccessful business, and this is main-tained by anticipating developmentand forecasting future scenarios: by preparing in advance for the riskframework and Board authorizations.
Synergy benefits of ownershipThe Group’s communications and mar-keting make effective use of opportuni-ties for cooperation with the StudentUnion and of the positive impressionthat comes about from seeing the StudentUnion and the Group as being part ofthe same entity.
Conservative risk-takingThe Group’s business divisions andunits are conservative in taking finan-cial risks; this must not, however, leadto passivity. Companies that do welland generate value added for theirowner take an active approach to theirbusiness operations and their improve-ment. The Group accepts the occasionallosses that may result from dynamicbusiness operations if these losses areproportionate to the gains made overan agreed period of time, and if theyare appropriate to the risk-taking facilityof the unit in question.
Taking the environmentalperspective into consideration The Group is mindful of the environ-mental impact of its operations. TheGroup employs a system for the man-agement of environmental matters. Theimplementation of this environmentalprogramme is monitored by means ofan ecological accounting system and an environmental management system.
Social responsibilityThe Group takes the social impacts,both interpersonal and societal, of itsoperations into consideration. TheGroup realizes the principles of socialresponsibility by means such as seek-ing to establish a good working envi-ronment and by promoting the use ofethically sound products such as “fairtrade” products (which are boughtfrom small-scale producers).
Distribution of profitsWhen the Group decides on the distri-bution of profits, it takes into accountthe liquidity of the Group or unit, aswell as the need to safeguard futureoperations. No profit is distributed onthe basis of the unrealized capitalreturn of the Real Estate Division, asthis represents the prime risk buffer ofthe entire Group.
T H E G R O U N D R U L E S O F T H E G R O U P ’ S OW N E R2 0 0 0 I N B R I E F
O R GA N I Z AT I O N C H A RT, 1 JA N UA RY 2 0 0 1
• Net sales grew by 5% and were FIM 1.4 billion. Growth was primarily attributable to KILROY travels.
• Profit before extraordinary items and taxes was FIM 39 million. The overall result was FIM 30 million.
• Gross investments amounted to FIM 40 million.
• Return on investment was 18.8%; including capital gains from investments, the figure is 20.2%.
• Capital return was 25.8%; including capital gains from investments, the figure is 28.9%.
• The equity ratio exclusive of revaluations was 25.9%; including the potential revaluation of land areas allowed by the Accounting Act, the figure is 50.3%.
• Total assets were FIM 574 million. The positive difference between the balance sheet values and market values of real estate included in fixed assets was FIM 813 million.
• Proposed dividends amounted to FIM 13.5 million.
Real Estate Fundsof HYY
(parent corporationof the Group)
HYY Group Ltd
HYY Real Estate Kaivopiha Ltd
KILROY travelsInternational A/S
Subsidiariesin the Nordic countries,
Germany, the Netherlandsand Spain
Oy UniCafe Ab
University PressFinland Ltd
Real Estate Division
Travel Group
Other companies
RestaurantsOy UniCard Ab
Oy VanhaYlioppilastalo Ab
Oy AcademicaHotels Ltd
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 6
8 9
The profit target was not metThe profit target set for 2000 bythe Group’s owner, before extraordi-nary items and taxes, was approxi-mately FIM 45 million. Earningscame in at about FIM 39 million,that is, at the same level as last year.A significant improvement had beenforeseen for KILROY travels. Whenset against the peer group, KILROYtravels’ earnings were good, but thecompany did not improve its finan-cial result enough to meet its target.
The HYY Real Estate profits continued to improve, surpassing the
target. The combined earnings fromoperations geared towards universitycommunities weakened more thanplanned.
The overall result, or profit afterextraordinary items and taxes, slightlyexceeded the previous record set in1998.
Realized capital return fromrevaluationsIn accordance with the Group’sowner strategy, the main divisionscan record as returns any increasesin market value at an appropriatetime considering the companies’internal development and the trendin the investment markets. In both of the main divisions, the capitalreturn from revaluations – both real-ized and unrealized – is the secondkey income component. In 2000, no major realizations were carried out.
R E V I E W B Y T H E P R E S I D E N T A N D C E O
Unrealized capital returnfrom revaluationsIn order to give a true and fair view,the Group has, for the fifth time,included in the notes to the financialstatements the market values of itsreal estate and the changes in thesevalues during the financial year, alongwith the income return, the capitalreturn and the total return.
The Group has been involved inthe development of the national realestate index of the Finnish Institutefor Real Estate Economics from dayone; all major Finnish property own-ers renting business premises nowcontribute to its database. Europe-wide comparability of the indicatorshas been ensured through coopera-tion with the Investment PropertyDatabank. It is regrettable that only afew of the companies participating inthe real estate index publish compa-rable key indicators in their financialstatements. In fact, the figures pub-lished for “income from real estate”are most often based on company-specific accounting formulae. For as long as this situation persists, wecannot expect analysts and financialreporters to understand the differ-ence between, for instance, investedcapital and market value in the calcu-lation of financial results.
The positive capital return onHYY’s real estate amounted to aboutFIM 45.9 million during the financialyear. The total return on real estatedeclined from last year’s figure of 9.3 per cent to 9.1 per cent. The totalreturn on the City Centre Propertywas about 10.8% exclusive of theeffect of investments. The modesttotal return on the Leppäsuo Property,3.9%, was mainly due to the usagepurposes and rent levels decided uponfor the property by the owner.
Twenty-four companies and 1,565properties – which were valued at
about FIM 50 billion – participatedin the national real estate index in2000. The average total return onthese properties was 10.2%. A factordampening the rise of market valueswas that investors increased theirtotal return requirement, from 6.70to 7.50 per cent in the case of HYY’sreal estate.
A challenging year for KILROY travelsAt the end of 1999, the managingdirector and CEO of the KILROYtravels subgroup resigned and anothertook his place as planned, and themanagement group was substantiallyreshuffled during 2000. The takeoverof operations and the reviewing ofstrategies when a new managementsteps into a company most oftenmake for a highly demanding period,even if other factors are not in play.During the report year a final deci-sion also had to be made on thecompany’s largest IT project to date– a project that is mission critical interms of the company’s future per-formance. Likewise, the set goal ofincreasing the size class of the com-pany rapidly has not only made itnecessary to launch new operationsand an online channel, but alsorequired it to participate in numer-ous acquisition projects, one of which– Team Travel – was consummated atthe end of the year. In addition, thecompany’s main markets in the Nordiccountries saw exceptional turbulenceand in some respects unhealthy pricecompetition. Considering all of this,the fact that the company improvedits result slightly compared with theprevious year can be viewed as a sig-nificant defensive victory. For exam-ple, a Swedish listed company thatoperates in the same market areas as KILROY travels and which isincluded in KILROY’s peer group
saw its result slump dramatically intothe red.
We can be even more satisfiedwith the result in view of the fact thatrealignments having a permanenteffect on the income and cost structurewere both prepared and implementedduring the report year. Our reactionspeed to changes in the businessenvironment has been improved. The IT project which will be put into operation during the latter halfof 2001 will play a key role in improv-ing cost-efficiency. Improving theexpertise of personnel and decreasingpersonnel turnover in some of thecountries where the company oper-ates will also be positive factors influ-encing earnings in the future.
The European and global travelindustry will undergo major restruc-turing in the coming years owing totwo partly intertwined megatrends:the impact of technology on consumerbehaviour and the consolidation ofthe industry. The rapid change inconsumer behaviour has lifted thesize of and the risks related to ITinvestments to a level that cannot be borne by traditional travel agen-cies at their present earnings levelsand size. Size needs to be increasedalso in order to maintain relative pur-chasing and negotiation power as airlines, hotels and other partnersconsolidate and strive to shorten thevalue chain by bypassing the tradi-tional travel agency level and generalreservation systems. The differentparties are also driven to consolidateto counter the “new economy para-dox”, which is actually considered athreat: the new technology enablesmarket steering to change direction.
When the general decline in theearnings of travel agency players inEurope is considered in tandem withthe above considerations, it is appar-ent that an accelerating consolidationprocess is now under way. KILROYtravels boasts a strong brand inNorthern Europe and a long historyof solid earnings in its field of busi-
ness, and will take an active part inthis process. The company’s capitaland financing structure is exception-ally strong and it receives supportfrom its main owners, whose objec-tives are strong and clearly defined.
Services for the universitycommunities register lossesOy UniCafe Ab continued tostrengthen its market leadership inrestaurant services for universities inthe Helsinki Metropolitan Area. Thelarge new restaurant in Ylioppilas-aukio, which the company investedin at the end of the previous year,has been a success from the start.The company’s loss-making resultwas due to the fact that, for the mostpart, the prices of student luncheswere kept unchanged during theperiod from 1 January 1991 to 20January 2001, that is, for a decade.This company and the expansion ofits operations in the educational seg-ment in Finland will comprise one of the Group’s key focus areas in thefuture.
Oy Vanha Ylioppilastalo Ab wasnot properly able to carry out itsrestaurant and festive services due tofacade renovation works that placedthe building under wraps. However,business environment factors do notfully explain the company’s loss-mak-ing result.
The business operations ofUniversity Bookstore Finland Ltdwere sold to Suomalainen Kirja-kauppa Oy at the beginning ofNovember 2000. Bookstore operationswere not part of the Group’s corebusiness areas, and it was not pre-pared to carry out the long-term ITinvestments required to meet thedemands of the changing competitionsituation. The decision to sell wasthe best solution both for servingthe university community and for thepersonnel.
Within University Press FinlandLtd, the operations of the Gaudeamusimprint developed especially favourably.
Oy Academica Hotels Ltd onceagain achieved good earnings in itshotel business considering its sizeclass and business period.
Prospects for the 2001 finan-cial yearThe net sales and especially the earn-ings level of the KILROY travels sub-group are expected to improve signifi-cantly from their level in 2000. Thepossible booking of goodwill relatedto acquisitions may put the brakes onthe growth of earnings.
In the case of HYY Real Estate,the excellent market situation in thecentre of Helsinki makes it possible to increase rent levels of commercialand business premises when renewingagreements. Profits from the rental of HYY Real Estate are expected toimprove yet again from their level in2000.
The results of the restaurant com-panies Oy UniCafe Ab and Oy VanhaYlioppilastalo Ab are expected to riseslightly into the black.
The development direction andscale of outlays on the smart cardcompany Oy UniCard Ab, which washived off from the parent company at the end of 2000, will be decidedupon during 2001. The loss level thatwill be approved for this stage of thecompany’s evolution will depend onthe chosen strategy.
The net sales budgeted for theentire Group in 2001 are about FIM1.6 billion (EUR 270 million). Thebudgeted profit before extraordinaryitems and taxes is approximately FIM54 million (EUR 9 million).
AcknowledgementI would like to thank our customers,personnel and owners for making2000 a good year.
Tapio Kiiskinen
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 8
8 9
The profit target was not metThe profit target set for 2000 bythe Group’s owner, before extraordi-nary items and taxes, was approxi-mately FIM 45 million. Earningscame in at about FIM 39 million,that is, at the same level as last year.A significant improvement had beenforeseen for KILROY travels. Whenset against the peer group, KILROYtravels’ earnings were good, but thecompany did not improve its finan-cial result enough to meet its target.
The HYY Real Estate profits continued to improve, surpassing the
target. The combined earnings fromoperations geared towards universitycommunities weakened more thanplanned.
The overall result, or profit afterextraordinary items and taxes, slightlyexceeded the previous record set in1998.
Realized capital return fromrevaluationsIn accordance with the Group’sowner strategy, the main divisionscan record as returns any increasesin market value at an appropriatetime considering the companies’internal development and the trendin the investment markets. In both of the main divisions, the capitalreturn from revaluations – both real-ized and unrealized – is the secondkey income component. In 2000, no major realizations were carried out.
R E V I E W B Y T H E P R E S I D E N T A N D C E O
Unrealized capital returnfrom revaluationsIn order to give a true and fair view,the Group has, for the fifth time,included in the notes to the financialstatements the market values of itsreal estate and the changes in thesevalues during the financial year, alongwith the income return, the capitalreturn and the total return.
The Group has been involved inthe development of the national realestate index of the Finnish Institutefor Real Estate Economics from dayone; all major Finnish property own-ers renting business premises nowcontribute to its database. Europe-wide comparability of the indicatorshas been ensured through coopera-tion with the Investment PropertyDatabank. It is regrettable that only afew of the companies participating inthe real estate index publish compa-rable key indicators in their financialstatements. In fact, the figures pub-lished for “income from real estate”are most often based on company-specific accounting formulae. For as long as this situation persists, wecannot expect analysts and financialreporters to understand the differ-ence between, for instance, investedcapital and market value in the calcu-lation of financial results.
The positive capital return onHYY’s real estate amounted to aboutFIM 45.9 million during the financialyear. The total return on real estatedeclined from last year’s figure of 9.3 per cent to 9.1 per cent. The totalreturn on the City Centre Propertywas about 10.8% exclusive of theeffect of investments. The modesttotal return on the Leppäsuo Property,3.9%, was mainly due to the usagepurposes and rent levels decided uponfor the property by the owner.
Twenty-four companies and 1,565properties – which were valued at
about FIM 50 billion – participatedin the national real estate index in2000. The average total return onthese properties was 10.2%. A factordampening the rise of market valueswas that investors increased theirtotal return requirement, from 6.70to 7.50 per cent in the case of HYY’sreal estate.
A challenging year for KILROY travelsAt the end of 1999, the managingdirector and CEO of the KILROYtravels subgroup resigned and anothertook his place as planned, and themanagement group was substantiallyreshuffled during 2000. The takeoverof operations and the reviewing ofstrategies when a new managementsteps into a company most oftenmake for a highly demanding period,even if other factors are not in play.During the report year a final deci-sion also had to be made on thecompany’s largest IT project to date– a project that is mission critical interms of the company’s future per-formance. Likewise, the set goal ofincreasing the size class of the com-pany rapidly has not only made itnecessary to launch new operationsand an online channel, but alsorequired it to participate in numer-ous acquisition projects, one of which– Team Travel – was consummated atthe end of the year. In addition, thecompany’s main markets in the Nordiccountries saw exceptional turbulenceand in some respects unhealthy pricecompetition. Considering all of this,the fact that the company improvedits result slightly compared with theprevious year can be viewed as a sig-nificant defensive victory. For exam-ple, a Swedish listed company thatoperates in the same market areas as KILROY travels and which isincluded in KILROY’s peer group
saw its result slump dramatically intothe red.
We can be even more satisfiedwith the result in view of the fact thatrealignments having a permanenteffect on the income and cost structurewere both prepared and implementedduring the report year. Our reactionspeed to changes in the businessenvironment has been improved. The IT project which will be put into operation during the latter halfof 2001 will play a key role in improv-ing cost-efficiency. Improving theexpertise of personnel and decreasingpersonnel turnover in some of thecountries where the company oper-ates will also be positive factors influ-encing earnings in the future.
The European and global travelindustry will undergo major restruc-turing in the coming years owing totwo partly intertwined megatrends:the impact of technology on consumerbehaviour and the consolidation ofthe industry. The rapid change inconsumer behaviour has lifted thesize of and the risks related to ITinvestments to a level that cannot be borne by traditional travel agen-cies at their present earnings levelsand size. Size needs to be increasedalso in order to maintain relative pur-chasing and negotiation power as airlines, hotels and other partnersconsolidate and strive to shorten thevalue chain by bypassing the tradi-tional travel agency level and generalreservation systems. The differentparties are also driven to consolidateto counter the “new economy para-dox”, which is actually considered athreat: the new technology enablesmarket steering to change direction.
When the general decline in theearnings of travel agency players inEurope is considered in tandem withthe above considerations, it is appar-ent that an accelerating consolidationprocess is now under way. KILROYtravels boasts a strong brand inNorthern Europe and a long historyof solid earnings in its field of busi-
ness, and will take an active part inthis process. The company’s capitaland financing structure is exception-ally strong and it receives supportfrom its main owners, whose objec-tives are strong and clearly defined.
Services for the universitycommunities register lossesOy UniCafe Ab continued tostrengthen its market leadership inrestaurant services for universities inthe Helsinki Metropolitan Area. Thelarge new restaurant in Ylioppilas-aukio, which the company investedin at the end of the previous year,has been a success from the start.The company’s loss-making resultwas due to the fact that, for the mostpart, the prices of student luncheswere kept unchanged during theperiod from 1 January 1991 to 20January 2001, that is, for a decade.This company and the expansion ofits operations in the educational seg-ment in Finland will comprise one of the Group’s key focus areas in thefuture.
Oy Vanha Ylioppilastalo Ab wasnot properly able to carry out itsrestaurant and festive services due tofacade renovation works that placedthe building under wraps. However,business environment factors do notfully explain the company’s loss-mak-ing result.
The business operations ofUniversity Bookstore Finland Ltdwere sold to Suomalainen Kirja-kauppa Oy at the beginning ofNovember 2000. Bookstore operationswere not part of the Group’s corebusiness areas, and it was not pre-pared to carry out the long-term ITinvestments required to meet thedemands of the changing competitionsituation. The decision to sell wasthe best solution both for servingthe university community and for thepersonnel.
Within University Press FinlandLtd, the operations of the Gaudeamusimprint developed especially favourably.
Oy Academica Hotels Ltd onceagain achieved good earnings in itshotel business considering its sizeclass and business period.
Prospects for the 2001 finan-cial yearThe net sales and especially the earn-ings level of the KILROY travels sub-group are expected to improve signifi-cantly from their level in 2000. Thepossible booking of goodwill relatedto acquisitions may put the brakes onthe growth of earnings.
In the case of HYY Real Estate,the excellent market situation in thecentre of Helsinki makes it possible to increase rent levels of commercialand business premises when renewingagreements. Profits from the rental of HYY Real Estate are expected toimprove yet again from their level in2000.
The results of the restaurant com-panies Oy UniCafe Ab and Oy VanhaYlioppilastalo Ab are expected to riseslightly into the black.
The development direction andscale of outlays on the smart cardcompany Oy UniCard Ab, which washived off from the parent company at the end of 2000, will be decidedupon during 2001. The loss level thatwill be approved for this stage of thecompany’s evolution will depend onthe chosen strategy.
The net sales budgeted for theentire Group in 2001 are about FIM1.6 billion (EUR 270 million). Thebudgeted profit before extraordinaryitems and taxes is approximately FIM54 million (EUR 9 million).
AcknowledgementI would like to thank our customers,personnel and owners for making2000 a good year.
Tapio Kiiskinen
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 8
Equity ratio includingpotential revaluationof land areas, %
Return on equity (initial yield)if the revaluation of landareas is realized, %
Dividends from the HYY Groupto the Student Union´scontingency fund
Market value of HYY RealEstate and annual changein capital return
Difference between themarket values and bookvalues of the fixed assetsin the balance sheet(real estate)
Total return on HYYReal Estate
Tied-up risks by division,2000
Income return, %Capital return ratio, %Total return, %
Real Es
tate
Division
Travel
Group
Restauran
ts
Other companies
0
20
40
60
80
100
120
140
160
180
FIM million
Market valueAnnual change in capital return
Gross investmentsEquity ratio, %
0
10
20
30
40
50
60
70
80
90
FIM million
-96 -97 -98 -99 -000
10
20
30
40
50
60
%
-96 -97 -98 -99 -00
0
10
20
30
40
50
60
%
-96 -97 -98 -99 -00 -96 -97 -98 -99 -000
5
10
15
20
25
30
%
02468
101214161820
%
0
100
200
300
400
500
600
700
800
900
FIM million173.0
14.9 17.3 5.7
10.6
12.7 13.6
Security ratio
-96 -97 -98 -99 -000
2
4
6
8
10
Return on equity, %
0
10
20
30
40
50
%
-96 -97 -98 -99 -00
Return on investment, %
0
5
10
15
20
25
30
%
-96 -97 -98 -99 -00
17.118.9 19.1
21.018.8
36.2 36.7
21.0
28.925.8
11.6
18.5
29.2
23.9 25.924.9
15.7
36.8
88.0
40.6
47.7 51.8
58.6
50.0 50.3
8.0 8.9 9.210.6 10.0
5.2 5.0 4.95.6 5.9
-96 -97 -98 -99 -00 -96 -97 -98 -99 -00
602.8
658.0 714.7
764.5 812.9
9.3 9.1
FIM million
0
100
200
300
400
500
600
700
800
900
-96 -97 -98 -99 -00
701.1760.0
821.6
+58.8
897.2943.1
+61.7
+75.6+45.9
-96 -97 -98 -99 -000
5
10
15
20
25
30
12.8 13.0 13.0 13.5 13.5
FIM million
K E Y I N D I CATO R S 1 9 9 6 – 2 0 0 0
1996 1997*) 1998 1999 2000Net sales FIM million 798.4 911.0 982.2 1348.4 1416.7Change % 12.3 14.1 7.8 37.3 5.1Personnel costs FIM million 93.5 101.8 106.8 142.0 152.8Personnel costs as a share of net sales % 11.7 11.2 10.9 10.5 10.8Result of operations**) FIM million 22.2 28.1 49.8 38.7 38.6Gross investments FIM million 24.9 15.7 36.8 88.0 40.6Gross investments as a share of net sales % 3.1 1.7 3.7 6.5 2.9Net investments FIM million 15.0 9.7 -19.9 79.4 32.8Total assets FIM million 337.9 363.3 377.8 541.9 574.4Shareholders’ equity FIM million 28.5 47.5 64.7 72.3 80.9Fixed assets FIM million 177.4 173.9 168.5 220.1 229.7Liquid funds***) FIM million 124.3 148.2 170.7 272.3 286.1Net debts FIM million 105.7 55.0 -3.4 -20.8 -36.5
Payment of dividends to minority shareholders FIM million 0.2 0.6 2.2 1.8 2.2Distribution of profits to the Student Union FIM million 12.8 13.0 13.0 13.5 13.5Direct distribution of profits, total FIM million 13.0 13.6 15.2 15.3 15.7
Return on investmentexcluding capital gains % 17.1 18.9 19.1 21.0 18.8Return on investment including capital gains % 18.9 21.1 33.0 22.0 20.2Return on equity excluding capital gains % 36.2 36.7 21.0 28.9 25.8Return on equity including capital gains % 45.8 45.6 58.7 31.4 28.9Equity ratio at book value % 11.6 18.5 29.2 23.9 25.9Equity ratio including potential revaluation of land areas % 47.7 51.8 58.6 50.0 50.3Return on equity (initial yield) ifthe revaluation of land is realized % 8.0 8.9 9.2 10.6 10.0
*) The figures for 1997 have been converted to correspond to the new accounting practices introduced in 1998 **) Profit before extraordinary items and taxes***) Cash in hand and at bank as well as securities included in financial assets
The formulas for key indicators are presented on page 59.
10 11
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Other key indicators
0
200
400
600
800
1000
1200
1400
Net sales Profit before taxes andextraordinary itemsTravel Group
Real Estate DivisionOther CompaniesThe net sales of Finnish unitsare presented under the line
0
10
20
30
40
50
60
FIM million FIM million
-97 -98 -99 -00-96 -97 -98 -99 -00-96
Overall result
-96 -97 -98 -99 -00
FIM million
0
10
20
30
40
50
60
798.4
911.0 982.2
1348.41416.7
22.2
28.1
49.8
38.7 38.6
14.7
20.1
29.1
24.6
30.1
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 10
Equity ratio includingpotential revaluationof land areas, %
Return on equity (initial yield)if the revaluation of landareas is realized, %
Dividends from the HYY Groupto the Student Union´scontingency fund
Market value of HYY RealEstate and annual changein capital return
Difference between themarket values and bookvalues of the fixed assetsin the balance sheet(real estate)
Total return on HYYReal Estate
Tied-up risks by division,2000
Income return, %Capital return ratio, %Total return, %
Real Es
tate
Division
Travel
Group
Restauran
ts
Other companies
0
20
40
60
80
100
120
140
160
180
FIM million
Market valueAnnual change in capital return
Gross investmentsEquity ratio, %
0
10
20
30
40
50
60
70
80
90
FIM million
-96 -97 -98 -99 -000
10
20
30
40
50
60
%
-96 -97 -98 -99 -00
0
10
20
30
40
50
60
%
-96 -97 -98 -99 -00 -96 -97 -98 -99 -000
5
10
15
20
25
30
%
02468
101214161820
%
0
100
200
300
400
500
600
700
800
900
FIM million173.0
14.9 17.3 5.7
10.6
12.7 13.6
Security ratio
-96 -97 -98 -99 -000
2
4
6
8
10
Return on equity, %
0
10
20
30
40
50
%
-96 -97 -98 -99 -00
Return on investment, %
0
5
10
15
20
25
30
%
-96 -97 -98 -99 -00
17.118.9 19.1
21.018.8
36.2 36.7
21.0
28.925.8
11.6
18.5
29.2
23.9 25.924.9
15.7
36.8
88.0
40.6
47.7 51.8
58.6
50.0 50.3
8.0 8.9 9.210.6 10.0
5.2 5.0 4.95.6 5.9
-96 -97 -98 -99 -00 -96 -97 -98 -99 -00
602.8
658.0 714.7
764.5 812.9
9.3 9.1
FIM million
0
100
200
300
400
500
600
700
800
900
-96 -97 -98 -99 -00
701.1760.0
821.6
+58.8
897.2943.1
+61.7
+75.6+45.9
-96 -97 -98 -99 -000
5
10
15
20
25
30
12.8 13.0 13.0 13.5 13.5
FIM million
K E Y I N D I CATO R S 1 9 9 6 – 2 0 0 0
1996 1997*) 1998 1999 2000Net sales FIM million 798.4 911.0 982.2 1348.4 1416.7Change % 12.3 14.1 7.8 37.3 5.1Personnel costs FIM million 93.5 101.8 106.8 142.0 152.8Personnel costs as a share of net sales % 11.7 11.2 10.9 10.5 10.8Result of operations**) FIM million 22.2 28.1 49.8 38.7 38.6Gross investments FIM million 24.9 15.7 36.8 88.0 40.6Gross investments as a share of net sales % 3.1 1.7 3.7 6.5 2.9Net investments FIM million 15.0 9.7 -19.9 79.4 32.8Total assets FIM million 337.9 363.3 377.8 541.9 574.4Shareholders’ equity FIM million 28.5 47.5 64.7 72.3 80.9Fixed assets FIM million 177.4 173.9 168.5 220.1 229.7Liquid funds***) FIM million 124.3 148.2 170.7 272.3 286.1Net debts FIM million 105.7 55.0 -3.4 -20.8 -36.5
Payment of dividends to minority shareholders FIM million 0.2 0.6 2.2 1.8 2.2Distribution of profits to the Student Union FIM million 12.8 13.0 13.0 13.5 13.5Direct distribution of profits, total FIM million 13.0 13.6 15.2 15.3 15.7
Return on investmentexcluding capital gains % 17.1 18.9 19.1 21.0 18.8Return on investment including capital gains % 18.9 21.1 33.0 22.0 20.2Return on equity excluding capital gains % 36.2 36.7 21.0 28.9 25.8Return on equity including capital gains % 45.8 45.6 58.7 31.4 28.9Equity ratio at book value % 11.6 18.5 29.2 23.9 25.9Equity ratio including potential revaluation of land areas % 47.7 51.8 58.6 50.0 50.3Return on equity (initial yield) ifthe revaluation of land is realized % 8.0 8.9 9.2 10.6 10.0
*) The figures for 1997 have been converted to correspond to the new accounting practices introduced in 1998 **) Profit before extraordinary items and taxes***) Cash in hand and at bank as well as securities included in financial assets
The formulas for key indicators are presented on page 59.
10 11
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Other key indicators
0
200
400
600
800
1000
1200
1400
Net sales Profit before taxes andextraordinary itemsTravel Group
Real Estate DivisionOther CompaniesThe net sales of Finnish unitsare presented under the line
0
10
20
30
40
50
60
FIM million FIM million
-97 -98 -99 -00-96 -97 -98 -99 -00-96
Overall result
-96 -97 -98 -99 -00
FIM million
0
10
20
30
40
50
60
798.4
911.0 982.2
1348.41416.7
22.2
28.1
49.8
38.7 38.6
14.7
20.1
29.1
24.6
30.1
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 10
12 13
I N F O R M AT I O N O N P E R S O N N E L , 3 1 D E C E M B E R 2 0 0 0
The HYY Group’s personnel strategyThe aim of our personnel strategy isto ensure that the Group’s variousbusiness units both have access tothe right amount of competent andmotivated personnel and have suffi-ciently low personnel turnover interms of their operational target levels.
The implementation of the strategy is based on• the openness of the management
culture• supporting and rewarding person-
nel for participating in activitiesand for their initiative
• treating personnel in a fair andequitable manner, with genderequality a given
• a compensation level that isappropriate in view of the tasksand results, and rewarding excel-lent work
• personnel training and develop-ment are based on the Group’svalues and the objectives of the business units
• taking the development needs and life situation of a committedemployee into account
Personnel communications, trainingand research are employed to guar-antee that the Group’s values andcorporate culture are understoodand accepted within all businessunits and at the different personnellevels. Two of the central aspects ofthe corporate culture are prepared-ness for changes and working togetherwith others in the effort to reach theobjectives at hand. The Group’s val-ues are specified in the owner strat-egy documents decided upon by the
owner every other year and in theequality plan and training principlesthat were approved in 2000.
At the Group’s management level,people are expected not only to havethe personal characteristics requiredof successful managers and to developthem, but also to have the constantwillingness and ability to commit them-selves, in all honesty, to the Group’sobjectives, values and operatingprinciples.
Information on the HYY Group’s
management
The average age of the HYY Group’s
management was 43 years.
Of the directors, ten were women
and eight were men.
The directors’ average time of employment
with the Group was about nine years.
Time of employment in the HYY Group
Under 1 year ....................... 33%1 – 5 yrs .............................. 47%6 – 10 yrs .............................. 9%11 – 20 yrs ............................ 8%over 20 yrs ........................... 3%
Distribution of personnel ages
Under 20 years ...................... 3%20 – 29 yrs .......................... 60%30 – 39 yrs .......................... 24%40 – 49 yrs ............................ 7%over 50 yrs ............................ 6%
Distribution by gender
Women................................. 72%Men...................................... 28%
0
100
200
300
400
500
600512
382
130
Personnel turnover 2000
Started in 2000Leaving the Group’s employ in 2000Net increase
0
100
200
300
400
500
600
700
800824
Average number of employeesin Finland/abroad 1996 –2000
-96 -98 -99 -00-97
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyPersonnel below the linewere in Finland
32
25
71
2115
Turnover of permanent employeesby division in 2000, % (personnelleaving the Group’s employ /personnel at beginning of year x 100)
Travel GroupReal Estate DivisionRestaurantsOther companiesParent company
The average age of personnel was 30 years.
No. %
0
10
20
30
40
50
60
70
80
551 579 606
780
Nature of employment
Full-time ............................... 76%Part-time .............................. 24%
Nature of employment
Permanent ............................ 92%Temporary .............................. 8%
Educational level
Comprehensive school.......... 11%Post-comprehensivedegree ................................. 83%University degree.................... 6%
0
200
400
600
800
1000
1200
1400
Personnel expenses as a share ofnet sales, 1996 –2000
Net sales
Personnel expenses as a share of
net sales, %
0
50
100
150
200
250
300
350
400
198
280
134
183
272
185
Personnel expenses per employeeby division, 2000
Personnel expenses as a share ofnet sales by division, 2000
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyEntire Group
0
10
20
30
40
50
60
11
53
18
36
59
% FIM 1000 FIM million %
0
2
4
6
8
10
12
14
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyEntire Group
798.4
1348.4
911.0982.2
1416.7
-96 -98 -99 -00-97
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 12
12 13
I N F O R M AT I O N O N P E R S O N N E L , 3 1 D E C E M B E R 2 0 0 0
The HYY Group’s personnel strategyThe aim of our personnel strategy isto ensure that the Group’s variousbusiness units both have access tothe right amount of competent andmotivated personnel and have suffi-ciently low personnel turnover interms of their operational target levels.
The implementation of the strategy is based on• the openness of the management
culture• supporting and rewarding person-
nel for participating in activitiesand for their initiative
• treating personnel in a fair andequitable manner, with genderequality a given
• a compensation level that isappropriate in view of the tasksand results, and rewarding excel-lent work
• personnel training and develop-ment are based on the Group’svalues and the objectives of the business units
• taking the development needs and life situation of a committedemployee into account
Personnel communications, trainingand research are employed to guar-antee that the Group’s values andcorporate culture are understoodand accepted within all businessunits and at the different personnellevels. Two of the central aspects ofthe corporate culture are prepared-ness for changes and working togetherwith others in the effort to reach theobjectives at hand. The Group’s val-ues are specified in the owner strat-egy documents decided upon by the
owner every other year and in theequality plan and training principlesthat were approved in 2000.
At the Group’s management level,people are expected not only to havethe personal characteristics requiredof successful managers and to developthem, but also to have the constantwillingness and ability to commit them-selves, in all honesty, to the Group’sobjectives, values and operatingprinciples.
Information on the HYY Group’s
management
The average age of the HYY Group’s
management was 43 years.
Of the directors, ten were women
and eight were men.
The directors’ average time of employment
with the Group was about nine years.
Time of employment in the HYY Group
Under 1 year ....................... 33%1 – 5 yrs .............................. 47%6 – 10 yrs .............................. 9%11 – 20 yrs ............................ 8%over 20 yrs ........................... 3%
Distribution of personnel ages
Under 20 years ...................... 3%20 – 29 yrs .......................... 60%30 – 39 yrs .......................... 24%40 – 49 yrs ............................ 7%over 50 yrs ............................ 6%
Distribution by gender
Women................................. 72%Men...................................... 28%
0
100
200
300
400
500
600512
382
130
Personnel turnover 2000
Started in 2000Leaving the Group’s employ in 2000Net increase
0
100
200
300
400
500
600
700
800824
Average number of employeesin Finland/abroad 1996 –2000
-96 -98 -99 -00-97
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyPersonnel below the linewere in Finland
32
25
71
2115
Turnover of permanent employeesby division in 2000, % (personnelleaving the Group’s employ /personnel at beginning of year x 100)
Travel GroupReal Estate DivisionRestaurantsOther companiesParent company
The average age of personnel was 30 years.
No. %
0
10
20
30
40
50
60
70
80
551 579 606
780
Nature of employment
Full-time ............................... 76%Part-time .............................. 24%
Nature of employment
Permanent ............................ 92%Temporary .............................. 8%
Educational level
Comprehensive school.......... 11%Post-comprehensivedegree ................................. 83%University degree.................... 6%
0
200
400
600
800
1000
1200
1400
Personnel expenses as a share ofnet sales, 1996 –2000
Net sales
Personnel expenses as a share of
net sales, %
0
50
100
150
200
250
300
350
400
198
280
134
183
272
185
Personnel expenses per employeeby division, 2000
Personnel expenses as a share ofnet sales by division, 2000
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyEntire Group
0
10
20
30
40
50
60
11
53
18
36
59
% FIM 1000 FIM million %
0
2
4
6
8
10
12
14
Travel GroupReal Estate DivisionRestaurantsOther companiesParent companyEntire Group
798.4
1348.4
911.0982.2
1416.7
-96 -98 -99 -00-97
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 12
14 15
HYY Group Ltd owns and managesthe companies in its corporate groupin accordance with the general prin-ciples and guidelines laid down byits owner. Its aim is to:
• Organize the operational and corporate structure of the HYY Group and attend to its strategic management
• Attend to the financing of the HYY Group
• Produce internal services for the HYY Group and its owner, the Student Union of the University of Helsinki
• Examine and develop new businesses
• Implement centralized changes• Long-term investment activities
HYY Group Ltd does not seek toachieve distributable earnings of itsown through the HYY Group’s or itscorporate group’s internal day-to-daymanagement, administration or financ-ing services. The company strives tosupport the earnings performance ofthe entire Group by means of its oper-ations which are cost-efficient and ofa high professional standard. HYYGroup Ltd’s distributable equity andperiodic dividend payout to theGroup’s parent corporation, the Real
Estate Funds of HYY, are based onlong-term investment activities, inclu-sive of its fixed assets and the relatedprofits which are booked as incomefrom time to time.
Focus areas of operations in 2000As internal services in 2000, the com-pany attended to tasks related to thefinancial and personnel administra-tion of its owner – that is, HYY –and its subsidiaries (excluding theKILROY travels subgroup) as well asacted as an internal corporate bank.In addition, the company maintainedthe Group’s information network andthe related email system along withother software that is in shared use.
The company also handled theUniCard smart card system’s customerservice, the system’s clearing function,and the owner/loyal customer mar-keting within the context of the Uni-Card system until the end of October2000. The UniCard smart card systemwas hived off to form Oy UniCard Ab,a limited company, on 1 November2000.
PersonnelThe company employed an averageof 20 people in 2000. Years of serv-ice/person within the HYY Groupamount to 12 years on average. 85% of employees are permanentlyemployed. The average age ofemployees is 43 years and womenaccount for 90%.
InvestmentsThe company primarily invests inupdating IT software and replacinghardware. The company also slightlyincreased its holding in the KILROYtravels subgroup.
Near-term outlookThe company’s net sales target for2001 is about FIM 9.6 million (EUR1.6 million).
One of the company’s key objec-tives is to give the best possible sup-port for the earnings potential of theparent corporation and its domesticsubsidiaries with services that areproperly dimensioned and competi-tive in terms of their price/qualityratio. A special task is to support the futuredevelopment of the incorporated Uni-Card operations. Oy UniCard Ab’snear-term outlook is presented in thesection entitled Other Companies.
In 2001, the Group will graduallychange over to the euro. In April 2001,the euro will replace the Finnishmarkka as the accounting currency in Finland. In the case of salary andwage administration, the changeoverwill take place in the autumn. Cashtill systems in turn will make thechange on the first business day of2002, when cash sales will graduallybegin to be made in euros. Personneltraining on this topic has alreadycommenced. In autumn, the focusarea of training, especially trainingfor customer service employees, willshift to dealing with two currencies.
T H E G R O U P ’ S PA R E N T C O M PA N Y, H Y Y G R O U P LT D
Key indicators for the Group’s
parent company
2000 1999
Net sales, FIM million 10.3 10.0
Profit before taxes and extra-
ordinary items, FIM million -2.1 -0.3
Invested capital, FIM million 80.0 91.1
Return on investment, % -1.3 0.4
Return on investment, including
sales of investments, % -0.1 2.4
Gross investments, FIM million 1.5 2.5
Average personnel 20 20
Vice President Linnea Meder
Finland’s most widely-used payment card, the UniCard, can now be found in the wallets of over 30,000 members of the university community.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 14
14 15
HYY Group Ltd owns and managesthe companies in its corporate groupin accordance with the general prin-ciples and guidelines laid down byits owner. Its aim is to:
• Organize the operational and corporate structure of the HYY Group and attend to its strategic management
• Attend to the financing of the HYY Group
• Produce internal services for the HYY Group and its owner, the Student Union of the University of Helsinki
• Examine and develop new businesses
• Implement centralized changes• Long-term investment activities
HYY Group Ltd does not seek toachieve distributable earnings of itsown through the HYY Group’s or itscorporate group’s internal day-to-daymanagement, administration or financ-ing services. The company strives tosupport the earnings performance ofthe entire Group by means of its oper-ations which are cost-efficient and ofa high professional standard. HYYGroup Ltd’s distributable equity andperiodic dividend payout to theGroup’s parent corporation, the Real
Estate Funds of HYY, are based onlong-term investment activities, inclu-sive of its fixed assets and the relatedprofits which are booked as incomefrom time to time.
Focus areas of operations in 2000As internal services in 2000, the com-pany attended to tasks related to thefinancial and personnel administra-tion of its owner – that is, HYY –and its subsidiaries (excluding theKILROY travels subgroup) as well asacted as an internal corporate bank.In addition, the company maintainedthe Group’s information network andthe related email system along withother software that is in shared use.
The company also handled theUniCard smart card system’s customerservice, the system’s clearing function,and the owner/loyal customer mar-keting within the context of the Uni-Card system until the end of October2000. The UniCard smart card systemwas hived off to form Oy UniCard Ab,a limited company, on 1 November2000.
PersonnelThe company employed an averageof 20 people in 2000. Years of serv-ice/person within the HYY Groupamount to 12 years on average. 85% of employees are permanentlyemployed. The average age ofemployees is 43 years and womenaccount for 90%.
InvestmentsThe company primarily invests inupdating IT software and replacinghardware. The company also slightlyincreased its holding in the KILROYtravels subgroup.
Near-term outlookThe company’s net sales target for2001 is about FIM 9.6 million (EUR1.6 million).
One of the company’s key objec-tives is to give the best possible sup-port for the earnings potential of theparent corporation and its domesticsubsidiaries with services that areproperly dimensioned and competi-tive in terms of their price/qualityratio. A special task is to support the futuredevelopment of the incorporated Uni-Card operations. Oy UniCard Ab’snear-term outlook is presented in thesection entitled Other Companies.
In 2001, the Group will graduallychange over to the euro. In April 2001,the euro will replace the Finnishmarkka as the accounting currency in Finland. In the case of salary andwage administration, the changeoverwill take place in the autumn. Cashtill systems in turn will make thechange on the first business day of2002, when cash sales will graduallybegin to be made in euros. Personneltraining on this topic has alreadycommenced. In autumn, the focusarea of training, especially trainingfor customer service employees, willshift to dealing with two currencies.
T H E G R O U P ’ S PA R E N T C O M PA N Y, H Y Y G R O U P LT D
Key indicators for the Group’s
parent company
2000 1999
Net sales, FIM million 10.3 10.0
Profit before taxes and extra-
ordinary items, FIM million -2.1 -0.3
Invested capital, FIM million 80.0 91.1
Return on investment, % -1.3 0.4
Return on investment, including
sales of investments, % -0.1 2.4
Gross investments, FIM million 1.5 2.5
Average personnel 20 20
Vice President Linnea Meder
Finland’s most widely-used payment card, the UniCard, can now be found in the wallets of over 30,000 members of the university community.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 14
17
R E A L E STAT E D I V I S I O N
The Real Estate Division’s business is to make long-term investments in real estate and premises, and todevelop and maintain these invest-ments. The Real Estate Division’sservice operations provide the vari-ous units of the Student Union andrelated organizations with premises,and the division rents out reasonably-priced flats primarily to members ofthe Student Union.
The City Centre Property standsin the heart of Helsinki and comprisesthe Kaivopiha Commercial Buildingand the premises used by the StudentUnion itself. In the Leppäsuo quarterof the Kamppi district is the LeppäsuoProperty, which comprises DomusAcademica and the Library Building;the property has student housing andvarious facilities, including library and restaurant premises.
Kaivopiha Ltd’s main task is toattend to the facility management of HYY’s real estate, the renting offacilities, building management andmaintenance. In addition, the com-pany may own, as investments, sharesin Finnish residential and real estatecorporations.
Focus areas of operations in 2000In the general market for officepremise rentals, only about 9,000 m2
was available for rent in the heart of Helsinki in autumn 2000. In all of Helsinki, the vacancy rate of busi-ness premises declined from abouttwo to 1.1 per cent during the reportyear. The paid occupancy rate ofboth commercial and business prem-ises was close to 100% at the end ofthe year.
Residences were rented to mem-bers of the Student Union and tostudents attending the University of
Helsinki under student exchangeprogrammes, and the levels of therents that were set accounted for thelocation, residential level and condi-tion of the residences. The occupancyrate of the residential premises thatwere in use was about 97% duringthe report year.
The net sales of the KaivopihaCommercial Building amounted toFIM 50.8 million, up almost 6% onthe previous year. Profit before extra-ordinary items and taxes was FIM25.3 million (FIM 24.6 million in1999). The net sales of the serviceproperties were FIM 15.5 million,increasing by 28% compared withthe previous year. Profit beforeextraordinary items and taxes wasFIM 2.0 million (a loss ofFIM 1.0 million in 1999).Earnings from the rental ofpremises totalled FIM 20.9million (FIM 19.1 millionin 1999) after taxes.
PersonnelThe Real Estate Divisionhad an average payroll of12 people in 2000.Operational tasks havebeen primarily outsourced to HYYGroup Ltd’s corporate group andexternal providers. Employees of theReal Estate Division have been in theemploy of the HYY Group for nineyears on average. The share of perma-nent employees is 80%. The averageage of employees is 43 years and65% of them are women.
InvestmentsIn 2000, investments in the refurbish-ing of buildings and building equip-ment systems, replacements andmaintenance, and repairs related tothe rental of premises amounted to
about FIM 7.3 million. The propertymanagement and rental system wasmodernized in 2000.
Research and developmentThe division took part in the field’sR&D in numerous development proj-ects organized by the Finnish Institutefor Real Estate Economics, togetherwith major Finnish corporations own-ing real estate. In the customer satis-faction benchmarking project, the RealEstate Division achieved the best over-all grade out of 14 Finnish real estateowners. Other joint projects includedthe real estate yield and cost informa-tion projects and the real estate returnindex development project.
Near-term outlookThe Real Estate Division’s net salestarget for 2001 is FIM 69.6 million(EUR 11.7 million) and the profittarget before planned depreciation,interest and taxes is FIM 22.2 million(EUR 3.7 million).
The market for business premiserentals might register an increase inthe vacancy rate due to the decreasein demand for business premisesamong Internet and other new technology companies. In addition,extensive new office capacity will becompleted in the Helsinki Metro-politan Area in 2001.
16 17
Yrjö Herva, Director of the RealEstate Division
Assistant Director Jukka Leinonen
HYY’s real estate was given a new logo and visual image during 2000.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 16
17
R E A L E STAT E D I V I S I O N
The Real Estate Division’s business is to make long-term investments in real estate and premises, and todevelop and maintain these invest-ments. The Real Estate Division’sservice operations provide the vari-ous units of the Student Union andrelated organizations with premises,and the division rents out reasonably-priced flats primarily to members ofthe Student Union.
The City Centre Property standsin the heart of Helsinki and comprisesthe Kaivopiha Commercial Buildingand the premises used by the StudentUnion itself. In the Leppäsuo quarterof the Kamppi district is the LeppäsuoProperty, which comprises DomusAcademica and the Library Building;the property has student housing andvarious facilities, including library and restaurant premises.
Kaivopiha Ltd’s main task is toattend to the facility management of HYY’s real estate, the renting offacilities, building management andmaintenance. In addition, the com-pany may own, as investments, sharesin Finnish residential and real estatecorporations.
Focus areas of operations in 2000In the general market for officepremise rentals, only about 9,000 m2
was available for rent in the heart of Helsinki in autumn 2000. In all of Helsinki, the vacancy rate of busi-ness premises declined from abouttwo to 1.1 per cent during the reportyear. The paid occupancy rate ofboth commercial and business prem-ises was close to 100% at the end ofthe year.
Residences were rented to mem-bers of the Student Union and tostudents attending the University of
Helsinki under student exchangeprogrammes, and the levels of therents that were set accounted for thelocation, residential level and condi-tion of the residences. The occupancyrate of the residential premises thatwere in use was about 97% duringthe report year.
The net sales of the KaivopihaCommercial Building amounted toFIM 50.8 million, up almost 6% onthe previous year. Profit before extra-ordinary items and taxes was FIM25.3 million (FIM 24.6 million in1999). The net sales of the serviceproperties were FIM 15.5 million,increasing by 28% compared withthe previous year. Profit beforeextraordinary items and taxes wasFIM 2.0 million (a loss ofFIM 1.0 million in 1999).Earnings from the rental ofpremises totalled FIM 20.9million (FIM 19.1 millionin 1999) after taxes.
PersonnelThe Real Estate Divisionhad an average payroll of12 people in 2000.Operational tasks havebeen primarily outsourced to HYYGroup Ltd’s corporate group andexternal providers. Employees of theReal Estate Division have been in theemploy of the HYY Group for nineyears on average. The share of perma-nent employees is 80%. The averageage of employees is 43 years and65% of them are women.
InvestmentsIn 2000, investments in the refurbish-ing of buildings and building equip-ment systems, replacements andmaintenance, and repairs related tothe rental of premises amounted to
about FIM 7.3 million. The propertymanagement and rental system wasmodernized in 2000.
Research and developmentThe division took part in the field’sR&D in numerous development proj-ects organized by the Finnish Institutefor Real Estate Economics, togetherwith major Finnish corporations own-ing real estate. In the customer satis-faction benchmarking project, the RealEstate Division achieved the best over-all grade out of 14 Finnish real estateowners. Other joint projects includedthe real estate yield and cost informa-tion projects and the real estate returnindex development project.
Near-term outlookThe Real Estate Division’s net salestarget for 2001 is FIM 69.6 million(EUR 11.7 million) and the profittarget before planned depreciation,interest and taxes is FIM 22.2 million(EUR 3.7 million).
The market for business premiserentals might register an increase inthe vacancy rate due to the decreasein demand for business premisesamong Internet and other new technology companies. In addition,extensive new office capacity will becompleted in the Helsinki Metro-politan Area in 2001.
16 17
Yrjö Herva, Director of the RealEstate Division
Assistant Director Jukka Leinonen
HYY’s real estate was given a new logo and visual image during 2000.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 16
18
The excellent market situationseen in the last few years and theconcurrent increase in rent levels arelevelling off. Some customers rentingreal estate from HYY still need morespace to achieve organic growth andcentralize their functions.
It is intended that the zoning andbuilding rights of the Ylioppilasaukioproject, which is Kaivopiha’s develop-ment investment, will be completedduring 2001. The actual implementa-tion of the project is scheduled forthe beginning of 2002.
The residential premises ofDomus Academica, a student dormi-
tory that is located in the centre ofHelsinki and which boasts excellentlocal services, have encountered nooccupancy rate problems at the cur-rent rent and housing grant levels.During the past few years, renovationworks have been primarily targetedat the residential premises. The tech-nical and economic lifecycles andbusiness concepts of the other facili-ties – especially the undergroundpremises – have progressed to theirfinal stage. During 2001, efforts willbe made to procure zoning permitsfor conversion works; constructionwill take place later. The Library
Leasable area in the City Centre Propertyby type of facility, 31 Dec. 2000
Commercial premises:stores/restaurants .................. 45%Office premises:offices/halls ........................... 42%Storage .................................. 7%Other...................................... 6%
Leasable area: a total of 31,693 m2
Residential ........................... 49%Business premises ................ 35%Library ................................. 16%
Leasable area: a total of 15,544 m2
Leasable area in Leppäsuo Propertyby type of facility, 31 Dec. 2000
Key indicators for the Real Estate Division
2000 1999
Net sales, FIM million 66.7 60.6
Profit before taxes and extra-
ordinary items, FIM million 28.3 26.6
Invested capital, FIM million 172.8 162.0
Return on investment, % 19.4 21.1
Gross investments, FIM million 7.3 37.1
Average personnel 12 13
19
0.0 1.0 2.0 3.0 4.0
Aggregate satisfaction (offices, business premises, storage facilities)
company x
company x
company x
company x
comparison data
company x
company x
company x
company x
company x
company x
company x
company x
company x
HYY Real Estate
Aggregate satisfaction = the total average of all the queried attributes.
5.0
3.8
3.9
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.7
3.7
3.4
3.4
3.4
3.5
The customer satisfaction of the tenants of HYY’s real estate wasassessed in the Customer Satisfaction Benchmarking 2000 studycarried out by the Finnish Institute for Real Estate Economics and the Tampere University of Technology. Fourteen leading Finnishrenters of commercial, office and other business premises partici-pated in the study. Close to 1,500 tenants in all were interviewedby telephone.
The HYY Group’s Travel Group comprises the KILROY travelsGroup, which is a subgroup of theHYY Group. The parent company ofthe KILROY travels Group is theDanish company KILROY travelsInternational A/S, in which HYYGroup Ltd has a 56.9% holding ofthe shares and voting rights. Theprincipal minority shareholder isAxcel IndustriInvestor a.s. of Denmark,which has a 35% stake. KILROYtravels International A/S is the soleowner of its sales companies in all ofthe Nordic countries, the Netherlands,Germany and Spain. The solely-owned Benns Rejser A/S – whichspecializes in friendship associationtravel, especially to Australia, NewZealand, Canada and the UnitedStates – also operates with its ownsales companies in Denmark, Swedenand Norway. KILROY travels has aworldwide agreement-based servicenetwork that offers value-added services to travellers.
KILROY travels focuses on a cus-tomer community comprising stu-dents under the age of 33 and otheryouth under the age of 26. In thissegment, KILROY is and seeks toremain the leading and most preferredprovider of travel information, prod-ucts and other services in NorthernEurope. Its travel services, which areappropriately priced for the customercommunity and adapted for its cus-tomers’ needs, are divided into threeoperational business areas: Individualtravel, Group travel and Friendshipassociations travel (Benns). KILROYpurchases customized flight trans-portation and other travel products,and then wraps them in its ownbranding concept. Sales of products
T R AV E L G R O U P
and services and the building andmaintenance of customer relationstake place through three integrateddistribution channels: retail offices, callcentres and Internet/online services.
Focus areas of operations in2000The KILROY travels Group had netsales of FIM 1,254 million, up about5% compared with the previous year.The result before taxes was a profitof FIM 16.5 million. Expressed inaccordance with Danish accountingprinciples, net sales amounted toDKK 1,576 million, an increase ofabout 6%. KILROY travels’ net sales,gross margin and operating profitdid not fully meet all the targets setfor 2000. The main reason behindthis was the heating up of price com-petition between online travel agen-cies, especially in the Nordic coun-tries; airlines also entered this com-petition. Operating profit was alsoaffected by the dramatic stepping upof IT and Internet investments, whichare expected to have a positive impacton earnings in coming years.
New sales outlets were opened inVaasa in Finland; Kristiansand andOslo (Benns) in Norway; Linköping,Örebro and Stockholm in Sweden;and in Copenhagen in Denmark
(Group travel). In total, KILROYtravels had 48 sales outlets, sevencall centres and a centralized, inter-national online booking unit at theend of 2000.
Of the products sold by KILROYtravels, 75% are supplied by airlines.KILROY travels sold almost one mil-lion airplane seats in 2000 under itsown ticket concept, up 5%. KILROY’sown tickets accounted for approxi-mately 65% of the company’s totalairline ticket sales. KILROY has madeagreements with over 40 leading air-lines, some of which have enteredinto long-term strategic partnershipswith the company. A corporate pro-curement program was implementedat the end of 2000. Centralizationwill have a substantial, positive effecton the gross profit in the future.
PersonnelKILROY travels had an average of562 employees in 2000 (532 in 1999).The distribution of employees bycountry was:
2000 1999
Denmark 261 253
Norway 89 88
Finland 60 56
Sweden 104 88
Spain 9 9
Germany 26 29
The Netherlands 13 9
Total 562 532
InvestmentsKILROY travels’ gross investmentsin 2000 totalled FIM 29.7 million.The company invested in the expan-sion of operations, e-commerce andthe IT platform of the new andadvanced sales system that will beimplemented in 2001.
Mogens Jønck, Managing Director and CEOof the Travel Group
Building has been permanentlyrented to the library of the HelsinkiSchool of Economics and BusinessAdministration.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 18
18
The excellent market situationseen in the last few years and theconcurrent increase in rent levels arelevelling off. Some customers rentingreal estate from HYY still need morespace to achieve organic growth andcentralize their functions.
It is intended that the zoning andbuilding rights of the Ylioppilasaukioproject, which is Kaivopiha’s develop-ment investment, will be completedduring 2001. The actual implementa-tion of the project is scheduled forthe beginning of 2002.
The residential premises ofDomus Academica, a student dormi-
tory that is located in the centre ofHelsinki and which boasts excellentlocal services, have encountered nooccupancy rate problems at the cur-rent rent and housing grant levels.During the past few years, renovationworks have been primarily targetedat the residential premises. The tech-nical and economic lifecycles andbusiness concepts of the other facili-ties – especially the undergroundpremises – have progressed to theirfinal stage. During 2001, efforts willbe made to procure zoning permitsfor conversion works; constructionwill take place later. The Library
Leasable area in the City Centre Propertyby type of facility, 31 Dec. 2000
Commercial premises:stores/restaurants .................. 45%Office premises:offices/halls ........................... 42%Storage .................................. 7%Other...................................... 6%
Leasable area: a total of 31,693 m2
Residential ........................... 49%Business premises ................ 35%Library ................................. 16%
Leasable area: a total of 15,544 m2
Leasable area in Leppäsuo Propertyby type of facility, 31 Dec. 2000
Key indicators for the Real Estate Division
2000 1999
Net sales, FIM million 66.7 60.6
Profit before taxes and extra-
ordinary items, FIM million 28.3 26.6
Invested capital, FIM million 172.8 162.0
Return on investment, % 19.4 21.1
Gross investments, FIM million 7.3 37.1
Average personnel 12 13
19
0.0 1.0 2.0 3.0 4.0
Aggregate satisfaction (offices, business premises, storage facilities)
company x
company x
company x
company x
comparison data
company x
company x
company x
company x
company x
company x
company x
company x
company x
HYY Real Estate
Aggregate satisfaction = the total average of all the queried attributes.
5.0
3.8
3.9
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.7
3.7
3.4
3.4
3.4
3.5
The customer satisfaction of the tenants of HYY’s real estate wasassessed in the Customer Satisfaction Benchmarking 2000 studycarried out by the Finnish Institute for Real Estate Economics and the Tampere University of Technology. Fourteen leading Finnishrenters of commercial, office and other business premises partici-pated in the study. Close to 1,500 tenants in all were interviewedby telephone.
The HYY Group’s Travel Group comprises the KILROY travelsGroup, which is a subgroup of theHYY Group. The parent company ofthe KILROY travels Group is theDanish company KILROY travelsInternational A/S, in which HYYGroup Ltd has a 56.9% holding ofthe shares and voting rights. Theprincipal minority shareholder isAxcel IndustriInvestor a.s. of Denmark,which has a 35% stake. KILROYtravels International A/S is the soleowner of its sales companies in all ofthe Nordic countries, the Netherlands,Germany and Spain. The solely-owned Benns Rejser A/S – whichspecializes in friendship associationtravel, especially to Australia, NewZealand, Canada and the UnitedStates – also operates with its ownsales companies in Denmark, Swedenand Norway. KILROY travels has aworldwide agreement-based servicenetwork that offers value-added services to travellers.
KILROY travels focuses on a cus-tomer community comprising stu-dents under the age of 33 and otheryouth under the age of 26. In thissegment, KILROY is and seeks toremain the leading and most preferredprovider of travel information, prod-ucts and other services in NorthernEurope. Its travel services, which areappropriately priced for the customercommunity and adapted for its cus-tomers’ needs, are divided into threeoperational business areas: Individualtravel, Group travel and Friendshipassociations travel (Benns). KILROYpurchases customized flight trans-portation and other travel products,and then wraps them in its ownbranding concept. Sales of products
T R AV E L G R O U P
and services and the building andmaintenance of customer relationstake place through three integrateddistribution channels: retail offices, callcentres and Internet/online services.
Focus areas of operations in2000The KILROY travels Group had netsales of FIM 1,254 million, up about5% compared with the previous year.The result before taxes was a profitof FIM 16.5 million. Expressed inaccordance with Danish accountingprinciples, net sales amounted toDKK 1,576 million, an increase ofabout 6%. KILROY travels’ net sales,gross margin and operating profitdid not fully meet all the targets setfor 2000. The main reason behindthis was the heating up of price com-petition between online travel agen-cies, especially in the Nordic coun-tries; airlines also entered this com-petition. Operating profit was alsoaffected by the dramatic stepping upof IT and Internet investments, whichare expected to have a positive impacton earnings in coming years.
New sales outlets were opened inVaasa in Finland; Kristiansand andOslo (Benns) in Norway; Linköping,Örebro and Stockholm in Sweden;and in Copenhagen in Denmark
(Group travel). In total, KILROYtravels had 48 sales outlets, sevencall centres and a centralized, inter-national online booking unit at theend of 2000.
Of the products sold by KILROYtravels, 75% are supplied by airlines.KILROY travels sold almost one mil-lion airplane seats in 2000 under itsown ticket concept, up 5%. KILROY’sown tickets accounted for approxi-mately 65% of the company’s totalairline ticket sales. KILROY has madeagreements with over 40 leading air-lines, some of which have enteredinto long-term strategic partnershipswith the company. A corporate pro-curement program was implementedat the end of 2000. Centralizationwill have a substantial, positive effecton the gross profit in the future.
PersonnelKILROY travels had an average of562 employees in 2000 (532 in 1999).The distribution of employees bycountry was:
2000 1999
Denmark 261 253
Norway 89 88
Finland 60 56
Sweden 104 88
Spain 9 9
Germany 26 29
The Netherlands 13 9
Total 562 532
InvestmentsKILROY travels’ gross investmentsin 2000 totalled FIM 29.7 million.The company invested in the expan-sion of operations, e-commerce andthe IT platform of the new andadvanced sales system that will beimplemented in 2001.
Mogens Jønck, Managing Director and CEOof the Travel Group
Building has been permanentlyrented to the library of the HelsinkiSchool of Economics and BusinessAdministration.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 18
20 21
Key figures for the Travel Group
2000 1999
Net sales, FIM million 1253.6 1190.9
Profit before taxes and extra-
ordinary items, FIM million 16.5 15.8
Invested capital, FIM million 69.8 55.9
Return on investment, % 25.3 29.6
Gross investments, FIM million 29.7 44.8
Average personnel 562 532
Amsterdam (2)
Berlin (3)
Leipzig
Dresden
Uppsala
Stockholm (4)
Örebro
Linköping
Gothenburg (2)
Lund
Malmö
Copenhagen (5)
Oulu
Vaasa
Tampere
Jyväskylä
Turku
Helsinki
Tromsø
Umeå
Trondheim (2)
Oslo (3)
Bergen
Stavanger
Kristiansand
Aalborg
Holstebro (3)
Aarhus
Esbjerg
Odense
Madrid
The business locations
of the KILROY travels Group
in spring 2001
Research and developmentOne of KILROY travels’ key successfactors is a good knowledge of itsclientele and the ability to communi-cate with customers. Within the travelindustry, an exceptionally largeamount of KILROY’s expendituresgoes towards continually studying its customers and their needs as wellas for regularly monitoring the brandawareness and the company’s marketshare.
Near-term outlookBarring unforeseen events or trendsthat would affect the entire travel
industry, net sales are expected togrow by about 15% and operatingprofit by at least as much as in 2000based on organic growth and acqui-sitions. The full implementation ofthe large-scale IT programme –which the company has invested induring the past few years – at theend of 2001 will have a positive effecton cost-efficiency and earnings onlyfrom 2002 onwards.
The consolidation trend in theinternational leisure travel market isaccelerating. KILROY travels and itsowners are prepared to actively influ-ence this trend.
Two strong brands for youth – Coca-Cola and KILROY travels – will launch a joint promotional campaignin the Nordic countries in spring 2001.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 20
20 21
Key figures for the Travel Group
2000 1999
Net sales, FIM million 1253.6 1190.9
Profit before taxes and extra-
ordinary items, FIM million 16.5 15.8
Invested capital, FIM million 69.8 55.9
Return on investment, % 25.3 29.6
Gross investments, FIM million 29.7 44.8
Average personnel 562 532
Amsterdam (2)
Berlin (3)
Leipzig
Dresden
Uppsala
Stockholm (4)
Örebro
Linköping
Gothenburg (2)
Lund
Malmö
Copenhagen (5)
Oulu
Vaasa
Tampere
Jyväskylä
Turku
Helsinki
Tromsø
Umeå
Trondheim (2)
Oslo (3)
Bergen
Stavanger
Kristiansand
Aalborg
Holstebro (3)
Aarhus
Esbjerg
Odense
Madrid
The business locations
of the KILROY travels Group
in spring 2001
Research and developmentOne of KILROY travels’ key successfactors is a good knowledge of itsclientele and the ability to communi-cate with customers. Within the travelindustry, an exceptionally largeamount of KILROY’s expendituresgoes towards continually studying its customers and their needs as wellas for regularly monitoring the brandawareness and the company’s marketshare.
Near-term outlookBarring unforeseen events or trendsthat would affect the entire travel
industry, net sales are expected togrow by about 15% and operatingprofit by at least as much as in 2000based on organic growth and acqui-sitions. The full implementation ofthe large-scale IT programme –which the company has invested induring the past few years – at theend of 2001 will have a positive effecton cost-efficiency and earnings onlyfrom 2002 onwards.
The consolidation trend in theinternational leisure travel market isaccelerating. KILROY travels and itsowners are prepared to actively influ-ence this trend.
Two strong brands for youth – Coca-Cola and KILROY travels – will launch a joint promotional campaignin the Nordic countries in spring 2001.
39871_HYY_ENKKU 30.5.2001 11:27 Sivu 20
R E STAU R A N T S
22 23
Key indicators for the Restaurants Division
2000 1999
Net sales, FIM million 78.2 73.0
Profit before taxes and extra-
ordinary items, FIM million -2.1 2.2
Invested capital, FIM million 15.3 15.9
Return on investment, % -13.6 6.7
Gross investments, FIM million 1.6 3.5
Average personnel 213 195
Customers perceive the UniCafe brand in many ways.
The Restaurants Division comprises Oy UniCafe Ab and Oy Vanha Ylioppilas-talo Ab. Oy UniCafe Ab is an estab-lished provider of meals to studentsand personnel, and of festive, take-away and café services primarily onthe premises of the University ofHelsinki. Oy Vanha Ylioppilastalo Abprovides restaurant, terrace bar, festive,rental and entertainment services atthe Old Student House.
Focus areas of operations in 2000
Oy UniCafe AbAt the end of 2000, Oy UniCafe Abhad 23 restaurants. One new restau-rant was established during the year.The UniCafe restaurants performedreasonably well. The company’s netsales were FIM 62.0 million, up 14% on the previous year. The resultbefore extraordinary items and taxeswas a loss of FIM 1.0 million (a profit of FIM 0.1 million in 1999). The losswas due to the pricing of studentlunches.
The building of UniCafe’s brandcontinued according to plans. Thesuccess of the brand was based on the fact that the company truly cateredto the needs and wishes of its customers.The aim of the UniCafe brand is to bethe leading student and personnel
restaurant for the University ofHelsinki and other universities andpolytechnics.
Oy Vanha Ylioppilastalo AbFestive services were the cornerstoneof Restaurant Vanha’s profitability.Major customers of Vanha’s festiveservices included the Student Unionand the organizations under it, exter-nal companies and civic organizations.The Beercafe, which is open everyday, suffered from a reduction in itsclientele due to the renovation of the building’s facade. Sales on ter-races were low due to the poor sum-mer weather. Club Kajal, open everySaturday, consolidated its positionand racked up steady sales.
The company’s net sales in 2000amounted to FIM 16.2 million, down14% compared with the previous year.The result before extraordinary itemsand taxes was a loss of FIM 1.1 mil-lion (a profit of FIM 1.0 million in1999).
PersonnelIn 2000, an average of 186 peopleworked for Oy UniCafe Ab and 27 for Oy Vanha Ylioppilastalo Ab.Employees of the Restaurants Divisionhave been in the employ of the HYYGroup for five years on average. The share of permanent employees is82%. The average age of employeesis 33 years and 76% of them arewomen.
InvestmentsIn 2000, Oy UniCafe Ab’s grossinvestments amounted to FIM 1.4million and Oy Vanha YlioppilastaloAb’s to FIM 0.2 million. The invest-ments were primarily earmarked for kitchens and service lines.
Research and developmentOy UniCafe Ab has researched itscustomer and personnel satisfactionin a manner that is methodical andwhich permits the figures to be compared since 1995.
Near-term outlookThe restaurants’ net sales target for2001 is FIM 86.9 million (EUR 14.6million). The objective is to break even,with the result slightly in the black.
Oy UniCafe Ab will continue toengage in goal-directed brand build-ing efforts and improve food qualityconstantly. UniCafe is looking for newpremises in the centre of Helsinkiand new partners in the polytechnicand university sectors. The UniCardloyal customer card comprises a keyelement in UniCafe’s marketing.UniCafe aims to make payment trans-actions easier and faster, such as bymodernizing its cash tills and increas-ing UniCard usage. UniCafe constantlymonitors the pricing policy applied in wireless debiting.
Efforts will be made to improvethe satisfaction of Restaurant Vanha’sowner-customers during the businessyear, both in the case of festive serv-ices and day-to-day restaurant opera-tions. The owner-customer bonusesUniCard holders receive by usingtheir smart cards were increasedeffective 1 January 2001.
Marjo Berglund, Director of the Restaurant Division
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 22
R E STAU R A N T S
22 23
Key indicators for the Restaurants Division
2000 1999
Net sales, FIM million 78.2 73.0
Profit before taxes and extra-
ordinary items, FIM million -2.1 2.2
Invested capital, FIM million 15.3 15.9
Return on investment, % -13.6 6.7
Gross investments, FIM million 1.6 3.5
Average personnel 213 195
Customers perceive the UniCafe brand in many ways.
The Restaurants Division comprises Oy UniCafe Ab and Oy Vanha Ylioppilas-talo Ab. Oy UniCafe Ab is an estab-lished provider of meals to studentsand personnel, and of festive, take-away and café services primarily onthe premises of the University ofHelsinki. Oy Vanha Ylioppilastalo Abprovides restaurant, terrace bar, festive,rental and entertainment services atthe Old Student House.
Focus areas of operations in 2000
Oy UniCafe AbAt the end of 2000, Oy UniCafe Abhad 23 restaurants. One new restau-rant was established during the year.The UniCafe restaurants performedreasonably well. The company’s netsales were FIM 62.0 million, up 14% on the previous year. The resultbefore extraordinary items and taxeswas a loss of FIM 1.0 million (a profit of FIM 0.1 million in 1999). The losswas due to the pricing of studentlunches.
The building of UniCafe’s brandcontinued according to plans. Thesuccess of the brand was based on the fact that the company truly cateredto the needs and wishes of its customers.The aim of the UniCafe brand is to bethe leading student and personnel
restaurant for the University ofHelsinki and other universities andpolytechnics.
Oy Vanha Ylioppilastalo AbFestive services were the cornerstoneof Restaurant Vanha’s profitability.Major customers of Vanha’s festiveservices included the Student Unionand the organizations under it, exter-nal companies and civic organizations.The Beercafe, which is open everyday, suffered from a reduction in itsclientele due to the renovation of the building’s facade. Sales on ter-races were low due to the poor sum-mer weather. Club Kajal, open everySaturday, consolidated its positionand racked up steady sales.
The company’s net sales in 2000amounted to FIM 16.2 million, down14% compared with the previous year.The result before extraordinary itemsand taxes was a loss of FIM 1.1 mil-lion (a profit of FIM 1.0 million in1999).
PersonnelIn 2000, an average of 186 peopleworked for Oy UniCafe Ab and 27 for Oy Vanha Ylioppilastalo Ab.Employees of the Restaurants Divisionhave been in the employ of the HYYGroup for five years on average. The share of permanent employees is82%. The average age of employeesis 33 years and 76% of them arewomen.
InvestmentsIn 2000, Oy UniCafe Ab’s grossinvestments amounted to FIM 1.4million and Oy Vanha YlioppilastaloAb’s to FIM 0.2 million. The invest-ments were primarily earmarked for kitchens and service lines.
Research and developmentOy UniCafe Ab has researched itscustomer and personnel satisfactionin a manner that is methodical andwhich permits the figures to be compared since 1995.
Near-term outlookThe restaurants’ net sales target for2001 is FIM 86.9 million (EUR 14.6million). The objective is to break even,with the result slightly in the black.
Oy UniCafe Ab will continue toengage in goal-directed brand build-ing efforts and improve food qualityconstantly. UniCafe is looking for newpremises in the centre of Helsinkiand new partners in the polytechnicand university sectors. The UniCardloyal customer card comprises a keyelement in UniCafe’s marketing.UniCafe aims to make payment trans-actions easier and faster, such as bymodernizing its cash tills and increas-ing UniCard usage. UniCafe constantlymonitors the pricing policy applied in wireless debiting.
Efforts will be made to improvethe satisfaction of Restaurant Vanha’sowner-customers during the businessyear, both in the case of festive serv-ices and day-to-day restaurant opera-tions. The owner-customer bonusesUniCard holders receive by usingtheir smart cards were increasedeffective 1 January 2001.
Marjo Berglund, Director of the Restaurant Division
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 22
24 25
pany’s resources were scaled down in spring and summer 2000 to matchthe resources required by the newnumber of stores. In October 2000,the company’s business operationswere sold to Suomalainen Kirja-kauppa Oy in their entirety. At thebeginning of November, the companyacquired the UniCard smart card unitfrom HYY Group Ltd and renameditself Oy UniCard Ab. The UniversityBookstore racked up net sales ofFIM 10.4 million in a ten-monthperiod. The result was a loss of FIM 0.5 million before capital gainson the sale of business operations.
PersonnelIn 2000, University Press Finland Ltdhad an average of five employees, Oy Academica Hotels Ltd had threeand University Bookstore FinlandLtd (now Oy UniCard Ab) had nine.The employees have been in theemploy of the HYY Group for sevenyears on average. The share of per-manent employees is 64%. The aver-age age of employees is 37 years and82% of them are women.
InvestmentsIn 2000, investments in the improve-ment of IT capabilities amounted toFIM 0.4 million.
Near-term outlookThe companies’ net sales target for2001 is FIM 10.0 million (EUR 1.7million). The financial result targetbefore extraordinary items and taxesis a loss of FIM 1.1 million (EUR 0.2 million).
The focus of the operations ofUniversity Press Finland Ltd will beshifted to the development of theGaudeamus imprint.
Oy Academica Hotels Ltd’s oper-ations will expand in summer 2001.
University Press Finland Ltd, includedunder Other Companies, publishesliterature on the humanities, socialsciences, the environment and currentaffairs under the name of Gaudeamus,and literature on technology underthe Otatieto imprint. Oy AcademicaHotels Ltd runs a summer hotel inLeppäsuo, Helsinki. University Book-store Finland Ltd was engaged in thebook and stationery store businessuntil the end of October 2000.
Focus areas of operations in 2000
University Press Finland LtdIn 2000, Gaudeamus published 28new titles and 25 reprints. Otatietopublished 4 new titles and 29 reprints.The company’s net sales in 2000amounted to FIM 4.8 million and itsresult before taxes and extraordinaryitems was a loss of FIM 0.2 million.After figuring in the final sales priceof the teaching handout businessthat was sold in 1999, its result wasa profit of FIM 0.3 million.
Oy Academica Hotels LtdOy Academica Hotels Ltd acts as a tenant of HYY Real Estate inBuilding D of Domus Academica onHietaniemenkatu street. 115 roomswere in use, of which 23 served ashostel rooms. The occupancy ratewas 92% in the summer. The com-pany’s full-year net sales were FIM2.5 million. Its profit before taxesand extraordinary items was FIM 0.2 million after FIM 0.2 million inintra-Group goodwill amortization.
University Bookstore Finland LtdThe functions of the Porthania andcity centre stores of the UniversityBookstore chain were merged as fromthe beginning of 2000. The com-
OT H E R C O M PA N I E S
Its room capacity will grow to 215.Judging from the number of prebookedrooms, the market has given the addi-tional capacity a good reception.
The UniCard smart card, with itsdebit and loyal customer system, hasachieved the major quantitative targets
set for it at the time when the invest-ments were made. UniCard remainsthe only smart card that is activelyused in Finland. In 2001, the objec-tive is to expand the customer base to encompass other universities in the Helsinki Metropolitan Area and to increase the number of servicesthat can be accessed with the card.During the current year, it will also beassessed whether it would be feasibleto set up within the UniCard systeman electronic market place for youngstudents that would be both useful tothem and profitable for the company. The financial result target for 2001remains in the red.
Key indicators for the Other Companies
2000 1999
Net sales, FIM million 17.2 23.0
Profit before taxes and extra-
ordinary items, FIM million 2.4 0.6
Invested capital, FIM million 5.3 6.2
Return on investment, % -7.5 8.4
Return on investment,
when accounting for capital
gains from the sale of the
terminated operations, % 50.8 14.8
Gross investments,
FIM million 2.0 0.1
Average personnel 17 20
Assistant Director Arja Kosonen
The books published by University Press Finland Ltd’s Gaudeamus imprint pique interest in the media.
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 24
24 25
pany’s resources were scaled down in spring and summer 2000 to matchthe resources required by the newnumber of stores. In October 2000,the company’s business operationswere sold to Suomalainen Kirja-kauppa Oy in their entirety. At thebeginning of November, the companyacquired the UniCard smart card unitfrom HYY Group Ltd and renameditself Oy UniCard Ab. The UniversityBookstore racked up net sales ofFIM 10.4 million in a ten-monthperiod. The result was a loss of FIM 0.5 million before capital gainson the sale of business operations.
PersonnelIn 2000, University Press Finland Ltdhad an average of five employees, Oy Academica Hotels Ltd had threeand University Bookstore FinlandLtd (now Oy UniCard Ab) had nine.The employees have been in theemploy of the HYY Group for sevenyears on average. The share of per-manent employees is 64%. The aver-age age of employees is 37 years and82% of them are women.
InvestmentsIn 2000, investments in the improve-ment of IT capabilities amounted toFIM 0.4 million.
Near-term outlookThe companies’ net sales target for2001 is FIM 10.0 million (EUR 1.7million). The financial result targetbefore extraordinary items and taxesis a loss of FIM 1.1 million (EUR 0.2 million).
The focus of the operations ofUniversity Press Finland Ltd will beshifted to the development of theGaudeamus imprint.
Oy Academica Hotels Ltd’s oper-ations will expand in summer 2001.
University Press Finland Ltd, includedunder Other Companies, publishesliterature on the humanities, socialsciences, the environment and currentaffairs under the name of Gaudeamus,and literature on technology underthe Otatieto imprint. Oy AcademicaHotels Ltd runs a summer hotel inLeppäsuo, Helsinki. University Book-store Finland Ltd was engaged in thebook and stationery store businessuntil the end of October 2000.
Focus areas of operations in 2000
University Press Finland LtdIn 2000, Gaudeamus published 28new titles and 25 reprints. Otatietopublished 4 new titles and 29 reprints.The company’s net sales in 2000amounted to FIM 4.8 million and itsresult before taxes and extraordinaryitems was a loss of FIM 0.2 million.After figuring in the final sales priceof the teaching handout businessthat was sold in 1999, its result wasa profit of FIM 0.3 million.
Oy Academica Hotels LtdOy Academica Hotels Ltd acts as a tenant of HYY Real Estate inBuilding D of Domus Academica onHietaniemenkatu street. 115 roomswere in use, of which 23 served ashostel rooms. The occupancy ratewas 92% in the summer. The com-pany’s full-year net sales were FIM2.5 million. Its profit before taxesand extraordinary items was FIM 0.2 million after FIM 0.2 million inintra-Group goodwill amortization.
University Bookstore Finland LtdThe functions of the Porthania andcity centre stores of the UniversityBookstore chain were merged as fromthe beginning of 2000. The com-
OT H E R C O M PA N I E S
Its room capacity will grow to 215.Judging from the number of prebookedrooms, the market has given the addi-tional capacity a good reception.
The UniCard smart card, with itsdebit and loyal customer system, hasachieved the major quantitative targets
set for it at the time when the invest-ments were made. UniCard remainsthe only smart card that is activelyused in Finland. In 2001, the objec-tive is to expand the customer base to encompass other universities in the Helsinki Metropolitan Area and to increase the number of servicesthat can be accessed with the card.During the current year, it will also beassessed whether it would be feasibleto set up within the UniCard systeman electronic market place for youngstudents that would be both useful tothem and profitable for the company. The financial result target for 2001remains in the red.
Key indicators for the Other Companies
2000 1999
Net sales, FIM million 17.2 23.0
Profit before taxes and extra-
ordinary items, FIM million 2.4 0.6
Invested capital, FIM million 5.3 6.2
Return on investment, % -7.5 8.4
Return on investment,
when accounting for capital
gains from the sale of the
terminated operations, % 50.8 14.8
Gross investments,
FIM million 2.0 0.1
Average personnel 17 20
Assistant Director Arja Kosonen
The books published by University Press Finland Ltd’s Gaudeamus imprint pique interest in the media.
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 24
2726
A N N UA L R E P O RT O F T H E B OA R D O F D I R E CTO R S
B U S I N E S S C L I M AT E A N D T R E N D SThe travel industry and businesstravel in particular continued to grow briskly in Europe, with growthtopping 10% in many countries. Inthe case of the countries whereKILROY travels does business,growth was substantially smaller inNorway and Germany, and the aggre-gate market contracted in Denmark.In Finnish markka terms, the aggre-gate market grew only slightly inKILROY travels’ market segment in the Nordic countries due to thegeneral decline in price levels.
In the real estate business, thedemand for rental business premisesremained extremely high in Helsinki.Rents have continued to rise formany years running. In 2000, theincrease in rents in the heart ofHelsinki levelled off. In the case ofnew rental agreements, the medianrent of commercial premises in theHelsinki city centre rose by about6% in the period from autumn 1999 to autumn 2000, or an increaseof approximately 4% in the prevail-ing rent level. The correspondingincreases in the rents of office prem-ises were 10% and 7%. The numberof unrented business premises wasexceptionally low.
Demand has been especially stablein the case of business related prima-rily to university and educationalcommunities.
N E T SA L E SThe Group’s net sales amounted to FIM 1,416.7 million, up 5% com-pared with the previous year.
The net sales of the Group’s parentcompany and domestic companiesaccounted for 22% of the aggregate
net sales. The remainder, 78%, camefrom the net sales of the Travel sub-group’s foreign companies.
D I V I S I O N SReal Estate DivisionThe net sales of the Real EstateDivision (HYY’s real estate andKaivopiha Oy) came in at FIM 66.7million, an increase of 10% com-pared with the previous year. The netprofit amounted to FIM 28.3 million(FIM 26.6 million in 1999), after FIM 8.8 million in planned deprecia-tion, FIM 1.2 million in dividends
from subsidiaries and FIM 6.4 millionin net interest expenses. Earningsfrom the actual renting of businesspremises totalled FIM 25.6 million(FIM 23.3 million in 1999). Indirecttaxes and real estate taxes were FIM5.0 million. The net profit exceededthe target. In terms of net profit, thedivision is one of the best performersin its field when compared with otherbusinesses renting business premisesin the Helsinki city centre.
The annual revaluation of theGroup’s primary real-estate holdingsand the total return on real estate
F I NA N C I A L STAT E M E N T S , 3 1 D E C . 2 0 0 0
27
33
34
36
37
50
50
51
Annual report of the Board of Directors
Income statement
Balance sheet
Cash flow statement
Notes to the consolidated financial statements
Signatures
Statement by the Supervisory Board
Auditors’ report
Net sales by division:
FIM million 2000 1999 Change,
%
Real Estate Division
(HYY Real Estate, Kaivopiha Oy) 66.7 60.6 +10
Travel Group
(KILROY travels subgroup) 1,253.6 1,190.9 +5
Restaurants
(Oy UniCafe Ab, Oy Vanha Ylioppilastalo Ab) 78.2 73.0 +7
Other companies
(University Press Finland Ltd, Oy Academica Hotels Ltd,
Oy UniCard Ab) 17.2 23.0 -25
Parent company:
HYY Group Ltd *) 1.1 0.9 -
TOTAL 1,416.7 1,348.4 +5
*) internal sales have been eliminated
Real Estate Division
Net sales and profit*) by unit:
FIM million 2000 1999
Net sales Profit Net sales Profit
HYY Real Estate
Corporate real estate 50.8 25.3 48.0 24.6
Service real estate 15.5 2.0 12.1 -1.0
Dividend income 1.2 5.0
Interest expenses of investment activities -0.3 -0.3
Kaivopiha Oy 4.5 0.0 4.3 -1.7
TOTAL 66.7 28.3 60.6 26.6
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % 19.4 21.1
Return on equity (initial yield), if the revaluation
of land is added to shareholders’ equity 9.0 9.4
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 26
2726
A N N UA L R E P O RT O F T H E B OA R D O F D I R E CTO R S
B U S I N E S S C L I M AT E A N D T R E N D SThe travel industry and businesstravel in particular continued to grow briskly in Europe, with growthtopping 10% in many countries. Inthe case of the countries whereKILROY travels does business,growth was substantially smaller inNorway and Germany, and the aggre-gate market contracted in Denmark.In Finnish markka terms, the aggre-gate market grew only slightly inKILROY travels’ market segment in the Nordic countries due to thegeneral decline in price levels.
In the real estate business, thedemand for rental business premisesremained extremely high in Helsinki.Rents have continued to rise formany years running. In 2000, theincrease in rents in the heart ofHelsinki levelled off. In the case ofnew rental agreements, the medianrent of commercial premises in theHelsinki city centre rose by about6% in the period from autumn 1999 to autumn 2000, or an increaseof approximately 4% in the prevail-ing rent level. The correspondingincreases in the rents of office prem-ises were 10% and 7%. The numberof unrented business premises wasexceptionally low.
Demand has been especially stablein the case of business related prima-rily to university and educationalcommunities.
N E T SA L E SThe Group’s net sales amounted to FIM 1,416.7 million, up 5% com-pared with the previous year.
The net sales of the Group’s parentcompany and domestic companiesaccounted for 22% of the aggregate
net sales. The remainder, 78%, camefrom the net sales of the Travel sub-group’s foreign companies.
D I V I S I O N SReal Estate DivisionThe net sales of the Real EstateDivision (HYY’s real estate andKaivopiha Oy) came in at FIM 66.7million, an increase of 10% com-pared with the previous year. The netprofit amounted to FIM 28.3 million(FIM 26.6 million in 1999), after FIM 8.8 million in planned deprecia-tion, FIM 1.2 million in dividends
from subsidiaries and FIM 6.4 millionin net interest expenses. Earningsfrom the actual renting of businesspremises totalled FIM 25.6 million(FIM 23.3 million in 1999). Indirecttaxes and real estate taxes were FIM5.0 million. The net profit exceededthe target. In terms of net profit, thedivision is one of the best performersin its field when compared with otherbusinesses renting business premisesin the Helsinki city centre.
The annual revaluation of theGroup’s primary real-estate holdingsand the total return on real estate
F I NA N C I A L STAT E M E N T S , 3 1 D E C . 2 0 0 0
27
33
34
36
37
50
50
51
Annual report of the Board of Directors
Income statement
Balance sheet
Cash flow statement
Notes to the consolidated financial statements
Signatures
Statement by the Supervisory Board
Auditors’ report
Net sales by division:
FIM million 2000 1999 Change,
%
Real Estate Division
(HYY Real Estate, Kaivopiha Oy) 66.7 60.6 +10
Travel Group
(KILROY travels subgroup) 1,253.6 1,190.9 +5
Restaurants
(Oy UniCafe Ab, Oy Vanha Ylioppilastalo Ab) 78.2 73.0 +7
Other companies
(University Press Finland Ltd, Oy Academica Hotels Ltd,
Oy UniCard Ab) 17.2 23.0 -25
Parent company:
HYY Group Ltd *) 1.1 0.9 -
TOTAL 1,416.7 1,348.4 +5
*) internal sales have been eliminated
Real Estate Division
Net sales and profit*) by unit:
FIM million 2000 1999
Net sales Profit Net sales Profit
HYY Real Estate
Corporate real estate 50.8 25.3 48.0 24.6
Service real estate 15.5 2.0 12.1 -1.0
Dividend income 1.2 5.0
Interest expenses of investment activities -0.3 -0.3
Kaivopiha Oy 4.5 0.0 4.3 -1.7
TOTAL 66.7 28.3 60.6 26.6
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % 19.4 21.1
Return on equity (initial yield), if the revaluation
of land is added to shareholders’ equity 9.0 9.4
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 26
2928
summer 2000. The renovation workshindered the marketing of festiveservices in particular, and did notleave the day-to-day operations ofthe restaurant unaffected. During the report year, the number ofrestaurants and bars in the centre of Helsinki increased dramatically.
Other companiesThe other companies (UniversityPress Finland Ltd, Oy AcademicaHotels Ltd and Oy UniCard Ab,formerly known as University Book-store Finland Ltd) had net sales of
FIM 17.2 million, or 25% less than in the previous year. Other operatingincome primarily comprised capitalgains on the sale of the businessoperations of the former UniversityBookstore Finland Ltd and the por-tion of capital gains on the sale ofthe teaching handout business whichmaterialized in 2000. Profit amountedto FIM 2.4 million, after FIM 0.5million in planned depreciation andFIM 0.3 million in net interest, andbefore financial statement adjust-ments. Profit before the capital gainson the sale of business operationswas not in line with the target.
The earnings of University PressFinland Ltd’s Gaudeamus imprintmatched the targets set for it. Thenumber of books published by Ota-tieto declined substantially and itsearnings fell short of the target.
Hostel Academica, which oper-ates under Oy Academica Hotels Ltd,racked up good earnings and itachieved all the targets set for it. The occupancy rate in the summerwas 92%.
The functions of the Porthaniaand city centre stores of the UniversityBookstore chain, which operatedunder University Bookstore FinlandLtd, were merged as from the begin-ning of 2000. The companies’resources were scaled down inspring and summer 2000 to matchthe resources required by the newnumber of stores. In October 2000,the company’s university bookstorefunctions were sold to SuomalainenKirjakauppa Oy in their entirety and the company was renamed OyUniCard Ab. At the beginning ofNovember, the company acquired the UniCard smart card unit fromHYY Group Ltd.
The parent company HYYGroup Ltd and its corporategroup (exclusive of the parentcorporation of the HYY Group,the Real Estate Funds of HYY)HYY Group Ltd’s net sales, whichprimarily comprise the Group’s inter-nal services, were FIM 10.3 million,up 3% on the previous year. Otheroperating income, FIM 0.9 million,mainly comprised capital gains onthe sale of the UniCard smart cardunit. The parent company posted a loss of FIM 1.7 million after netfinancing income of FIM 2.1 million
29
HYY Group Ltd’s corporate group:
2000 1999
Consolidated return on investment, % 10.2 15.5
Consolidated return of investment including
capital gains from the sale of investment-driven fixed assets, % 13.2 17.7
(net income return + revaluationincome return), calculated at the mar-ket values, are presented in detail in the notes to the financial statements.These figures are only directly com-parable to those of real-estate compa-nies that comply with the accountingconventions approved by the FinnishInstitute of Real Estate Economics,that is, if their income return, marketvalue and required return are calcu-lated in a comparable manner.
Travel GroupDenominated in Finnish markkaa, the KILROY travels subgroup’s netsales amounted to FIM 1,253.6 mil-lion, up 5% on the previous year.The Travel subgroup’s profits wereFIM 16.5 million (FIM 15.8 millionin 1999) before extraordinary itemsand taxes and after FIM 16.8 millionin depreciation and FIM 4.1 millionin net financing income. FIM 5.0million was booked in taxes. Theresult after extraordinary items andtaxes and before minority interest
was a profit of FIM 13.0 million (FIM6.8 million in 1999). Minority interesttotalled -0.1 million (+0.4 million in1999). Profits fell short of the target.
The results of the Nordic sub-sidiaries – with the exception of theNorwegian company – were clearlypositive. The earnings trend of BennsRejser A/S remained good. The resultswere in the black in the Netherlandsand Spain as well. The result of theGerman company is still in the red,but improving.
The net sales of the subgroup’sparent company, after the eliminationof sales to subsidiaries, come fromsales to the travel agencies acting asits agents outside its own territories.
According to the subgroup’sDanish financial statements, KILROYtravels’ net sales grew by about 6%and amounted to DKK 1,576 million.Profit before taxes and minorityinterest was DKK 20.7 million.
In the subgroup’s own financialstatements, drawn up according toFinnish Accounting and IAS conven-
tions, shareholders’ equity was FIM57.5 million as of 31 December 2000(FIM 49.1 million in 1999), of whichFIM 38.8 million was non-restrictedequity. On the basis of the net profitfor 1999, a dividend of 22% waspaid on share capital, or about 38%of earnings after taxes.
RestaurantsThe net sales of the restaurants (Oy UniCafe Ab and Oy VanhaYlioppilastalo Ab) amounted to FIM 78.2 million, up 7% on theprevious year. The result was a lossof FIM 2.1 million (a profit of 1.3million in 1999), after FIM 2.0million in planned depreciation andFIM 0.7 million in net financingincome, and before financial state-ment adjustments.
At the end of 2000, there were23 UniCafe restaurants. They werereasonably successful. A total of close to 2.4 million lunches weresold during the financial year. Over 1.8 million student luncheswere sold, an increase of 8%. TheUniCard owner-customer programmeand outlays on the quality of foodensured the positive growth in lunchsales. The division’s result was in thered due to its deliberate pricingdecisions.
For ten years, the maximum price level of UniCafe’s studentlunches remained at the same levelas on 1 January 1991. UniCafe wassignificantly cheaper than its com-petitors.
Oy Vanha Ylioppilastalo Ab’sRestaurant Vanha posted a clear loss.The renovation of the façade of theOld Student House, which began in 1999 and required the façade tobe placed under wraps, lasted until
28
Travel Group
Net sales by company:
FIM million 2000 1999 Change,
% 1)
KILROY travels International A/S 2) 32.7 8.6 280
KILROY travels Denmark A/S 188.8 201.2 -6
KILROY travels Finland OY AB 141.6 133.8 6
KILROY travels Norway A/S 219.9 213.4 3
KILROY travels Sweden AB 256.8 241.8 6
KILROY travels Spain S.A. 43.6 42.4 3
KILROY travels Germany GmbH 42.3 37.3 13
KILROY travels Netherlands B.V. 28.9 18.4 57
Benns Rejser Group 3) 293.2 294.0 -
KILROY Invest 5.7 -
NET SALES 1,253.6 1,190.9 5
1) these percentages may vary when presented in the company’s home currency 2) parent company’s sales to subsidiaries have been eliminated3) includes Benns Rejser A/S, Benns Resor AB and Benns Reiser AS
2000 1999
Return on investment, % 25.3 29.6
Restaurants
Net sales and profit*) by company:
FIM million 2000 1999
Net sales Profit Net sales Profit
Oy UniCafe Ab 62.0 -1.0 54.3 0.1
Oy Vanha Ylioppilastalo Ab 16.2 -1.1 18.8 1.2
TOTAL 78.2 -2.1 73.0 1.3
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % -13.6 6.7
Other companies
Net sales and profit*) by company:
FIM million 2000 1999
Net sales Profit Net sales Profit
University Press Finland Ltd 4.8 -0.2 6.8 0.0
Oy Academica Hotels Ltd 2.5 0.2 2.5 0.4
Oy UniCard Ab
(former University Bookstore Finland Ltd) 10.6 -0.9 14.6 -0.2
Elimination of intra-company sales/
Capital gains from sales of business functions -0.7 3.1 -0.9 0.4
TOTAL 17.2 2.4 23.0 0.6
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % -7.5 8.4
Return on investment, %, when accounting
for the capital gains on the sale of the terminated operations 50.8 14.8
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 28
2928
summer 2000. The renovation workshindered the marketing of festiveservices in particular, and did notleave the day-to-day operations ofthe restaurant unaffected. During the report year, the number ofrestaurants and bars in the centre of Helsinki increased dramatically.
Other companiesThe other companies (UniversityPress Finland Ltd, Oy AcademicaHotels Ltd and Oy UniCard Ab,formerly known as University Book-store Finland Ltd) had net sales of
FIM 17.2 million, or 25% less than in the previous year. Other operatingincome primarily comprised capitalgains on the sale of the businessoperations of the former UniversityBookstore Finland Ltd and the por-tion of capital gains on the sale ofthe teaching handout business whichmaterialized in 2000. Profit amountedto FIM 2.4 million, after FIM 0.5million in planned depreciation andFIM 0.3 million in net interest, andbefore financial statement adjust-ments. Profit before the capital gainson the sale of business operationswas not in line with the target.
The earnings of University PressFinland Ltd’s Gaudeamus imprintmatched the targets set for it. Thenumber of books published by Ota-tieto declined substantially and itsearnings fell short of the target.
Hostel Academica, which oper-ates under Oy Academica Hotels Ltd,racked up good earnings and itachieved all the targets set for it. The occupancy rate in the summerwas 92%.
The functions of the Porthaniaand city centre stores of the UniversityBookstore chain, which operatedunder University Bookstore FinlandLtd, were merged as from the begin-ning of 2000. The companies’resources were scaled down inspring and summer 2000 to matchthe resources required by the newnumber of stores. In October 2000,the company’s university bookstorefunctions were sold to SuomalainenKirjakauppa Oy in their entirety and the company was renamed OyUniCard Ab. At the beginning ofNovember, the company acquired the UniCard smart card unit fromHYY Group Ltd.
The parent company HYYGroup Ltd and its corporategroup (exclusive of the parentcorporation of the HYY Group,the Real Estate Funds of HYY)HYY Group Ltd’s net sales, whichprimarily comprise the Group’s inter-nal services, were FIM 10.3 million,up 3% on the previous year. Otheroperating income, FIM 0.9 million,mainly comprised capital gains onthe sale of the UniCard smart cardunit. The parent company posted a loss of FIM 1.7 million after netfinancing income of FIM 2.1 million
29
HYY Group Ltd’s corporate group:
2000 1999
Consolidated return on investment, % 10.2 15.5
Consolidated return of investment including
capital gains from the sale of investment-driven fixed assets, % 13.2 17.7
(net income return + revaluationincome return), calculated at the mar-ket values, are presented in detail in the notes to the financial statements.These figures are only directly com-parable to those of real-estate compa-nies that comply with the accountingconventions approved by the FinnishInstitute of Real Estate Economics,that is, if their income return, marketvalue and required return are calcu-lated in a comparable manner.
Travel GroupDenominated in Finnish markkaa, the KILROY travels subgroup’s netsales amounted to FIM 1,253.6 mil-lion, up 5% on the previous year.The Travel subgroup’s profits wereFIM 16.5 million (FIM 15.8 millionin 1999) before extraordinary itemsand taxes and after FIM 16.8 millionin depreciation and FIM 4.1 millionin net financing income. FIM 5.0million was booked in taxes. Theresult after extraordinary items andtaxes and before minority interest
was a profit of FIM 13.0 million (FIM6.8 million in 1999). Minority interesttotalled -0.1 million (+0.4 million in1999). Profits fell short of the target.
The results of the Nordic sub-sidiaries – with the exception of theNorwegian company – were clearlypositive. The earnings trend of BennsRejser A/S remained good. The resultswere in the black in the Netherlandsand Spain as well. The result of theGerman company is still in the red,but improving.
The net sales of the subgroup’sparent company, after the eliminationof sales to subsidiaries, come fromsales to the travel agencies acting asits agents outside its own territories.
According to the subgroup’sDanish financial statements, KILROYtravels’ net sales grew by about 6%and amounted to DKK 1,576 million.Profit before taxes and minorityinterest was DKK 20.7 million.
In the subgroup’s own financialstatements, drawn up according toFinnish Accounting and IAS conven-
tions, shareholders’ equity was FIM57.5 million as of 31 December 2000(FIM 49.1 million in 1999), of whichFIM 38.8 million was non-restrictedequity. On the basis of the net profitfor 1999, a dividend of 22% waspaid on share capital, or about 38%of earnings after taxes.
RestaurantsThe net sales of the restaurants (Oy UniCafe Ab and Oy VanhaYlioppilastalo Ab) amounted to FIM 78.2 million, up 7% on theprevious year. The result was a lossof FIM 2.1 million (a profit of 1.3million in 1999), after FIM 2.0million in planned depreciation andFIM 0.7 million in net financingincome, and before financial state-ment adjustments.
At the end of 2000, there were23 UniCafe restaurants. They werereasonably successful. A total of close to 2.4 million lunches weresold during the financial year. Over 1.8 million student luncheswere sold, an increase of 8%. TheUniCard owner-customer programmeand outlays on the quality of foodensured the positive growth in lunchsales. The division’s result was in thered due to its deliberate pricingdecisions.
For ten years, the maximum price level of UniCafe’s studentlunches remained at the same levelas on 1 January 1991. UniCafe wassignificantly cheaper than its com-petitors.
Oy Vanha Ylioppilastalo Ab’sRestaurant Vanha posted a clear loss.The renovation of the façade of theOld Student House, which began in 1999 and required the façade tobe placed under wraps, lasted until
28
Travel Group
Net sales by company:
FIM million 2000 1999 Change,
% 1)
KILROY travels International A/S 2) 32.7 8.6 280
KILROY travels Denmark A/S 188.8 201.2 -6
KILROY travels Finland OY AB 141.6 133.8 6
KILROY travels Norway A/S 219.9 213.4 3
KILROY travels Sweden AB 256.8 241.8 6
KILROY travels Spain S.A. 43.6 42.4 3
KILROY travels Germany GmbH 42.3 37.3 13
KILROY travels Netherlands B.V. 28.9 18.4 57
Benns Rejser Group 3) 293.2 294.0 -
KILROY Invest 5.7 -
NET SALES 1,253.6 1,190.9 5
1) these percentages may vary when presented in the company’s home currency 2) parent company’s sales to subsidiaries have been eliminated3) includes Benns Rejser A/S, Benns Resor AB and Benns Reiser AS
2000 1999
Return on investment, % 25.3 29.6
Restaurants
Net sales and profit*) by company:
FIM million 2000 1999
Net sales Profit Net sales Profit
Oy UniCafe Ab 62.0 -1.0 54.3 0.1
Oy Vanha Ylioppilastalo Ab 16.2 -1.1 18.8 1.2
TOTAL 78.2 -2.1 73.0 1.3
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % -13.6 6.7
Other companies
Net sales and profit*) by company:
FIM million 2000 1999
Net sales Profit Net sales Profit
University Press Finland Ltd 4.8 -0.2 6.8 0.0
Oy Academica Hotels Ltd 2.5 0.2 2.5 0.4
Oy UniCard Ab
(former University Bookstore Finland Ltd) 10.6 -0.9 14.6 -0.2
Elimination of intra-company sales/
Capital gains from sales of business functions -0.7 3.1 -0.9 0.4
TOTAL 17.2 2.4 23.0 0.6
*) profit before extraordinary items and taxes
2000 1999
Return on investment, % -7.5 8.4
Return on investment, %, when accounting
for the capital gains on the sale of the terminated operations 50.8 14.8
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 28
3130 31
(FIM 131.0 million in 1999). Netfinancing income amounted to FIM6.3 million (FIM 3.7 million in 1999).
The equity ratio at book valueswas 25.9% (23.9% in 1999). The asyet unaudited potential revaluationof the Group’s land areas, as given inthe notes to the financial statementsand figuring in solvency, leads to anequity ratio of 50.3% (50.0% in 1999).
The cash flow generated by theGroup’s ordinary business activitieswas a surplus of FIM 73.7 million.The Group’s cash-based net invest-ments were FIM 36.3 million. As of31 December 2000, the weightedeffective interest rate on the loans of the Finnish part of the Group was5.5% (4.7% in 1999).
P E R S O N N E LThe HYY Group employed an aver-age of 824 people during the reportyear, an increase of 44 employees onthe previous year. The growth of per-sonnel was primarily due to hiringby KILROY’s Nordic companies. Ofthe personnel, 322 were employed in Finland, 454 in other Nordic coun-tries and 48 elsewhere in Europe.
Trends in personnel, by division:
Division 2000 1999
Real Estate Division 12 13
Travel Group 562 532
Restaurants 213 195
Other companies 17 20
Parent company:
HYY Group Ltd 20 20
Group, total 824 780
G O I N G E A SY O N T H EE N V I R O N M E N TEcological activities in 2000 involvedthe implementation of a two-parttraining programme for the ecologi-cal supervisors of the Group’s busi-
ness locations. The training was car-ried out twice in the spring andautumn. People who had served asecological supervisors for at least halfa year and the close to 40 ecologicalsupervisors who completed the train-ing programme for ecological supervi-sors received a lump sum bonus in December. By paying this bonus,the corporate administration wishedto emphasize the importance of thesenew tasks.
The offices of the Group’s CityCentre Property and UniCafe Ylioppilas-aukio changed over to the use of“eco-electricity” at the beginning ofthe year. Seven per cent of the elec-tricity transmitted by HYY’s realestate was eco-electricity purchasedfor the Group’s units.
A second environmental audit wascarried out within the Group duringthe spring and the early autumn. Theaim was to assess the standard of theimplementation of the Group’s environ-mental programme and to carry out a basic review of the major develop-ment focuses of the environmentalprogramme. A key observation wasthat, although the HYY Group has for the most part been diligent in its handling of environmental compli-ance, the priority areas of the pro-gramme must be redefined if theservice sector companies are to main-tain their position at the head of thepack. Discussions on this matterwithin the administrative body of the Group’s owner started during thebeginning of the present year.
The working groups engaged inecological activities, the disseminationof information to the Group’s cus-tomers and ecological efforts having an effect on the corporate imagereceived especial attention when the
Group rewarded ecological efforts.
E U R OThe HYY Group already began prepa-rations for the implementation of theeuro in 1998 with the aim of makinga controlled changeover to the newcurrency. The euro will be adopted asthe accounting currency in April 2001.
P R E S I D E N T A N D AU D I TO RTapio Kiiskinen, M.Sc. (Econ.), wasthe President and CEO of the Groupfor the duration of the entire finan-cial year.
KPMG Wideri Oy Ab, AuthorizedPublic Accountants, were selected by the Representative Council of theStudent Union to act as the auditorsof the parent corporation, and theywere likewise selected by the AnnualGeneral Meeting to act as the audi-tors of HYY Group Ltd and its cor-porate group in 2000.
OW N E R S H I P O F T H EG R O U PThe Student Union of the Universityof Helsinki is a public sector entityhaving the right to autonomy. Its sta-tus is based on the Universities Act(645/1997) and the Student UnionDecree; the latter was passed on 6February 1998 on the basis of theUniversities Act and entered intoforce on 1 August 1998. As per therules ratified by the Student Unionon the basis of the decree, the realestate funds that are owned by theStudent Union, and which are sub-ject to the Accounting Act, functionas the parent corporation of a sepa-rate corporate body in the mannerdefined in the Accounting Act, thatis, the real estate funds are the parent
30
and FIM 0.4 million in Group contri-butions that were received and wererecorded in extraordinary items. Thecompany’s shareholders’ equity as at31 December 2000 was FIM 33.9million. The share of non-restrictedequity accounted for by fully distrib-utable funds was FIM 17.7 million.On the basis of the net profit for1999, a dividend of 8% was paid in2000 on share capital amounting toFIM 15.0 million.
Consolidated net sales amountedto FIM 1,358 million and grew by5% compared with the previous year.Other operating income amounted to FIM 7.9 million (1999: FIM 4.8million). Operating profit came in atFIM -0.8 million (1999: FIM 6.9 mil-lion). Profit before taxes and minor-ity interest was FIM 13.1 million(1999: FIM 12.8 million), after FIM12.4 million in financing income and FIM 1.6 million in extraordinaryincome. The net profit for the finan-cial year was FIM 2.3 million (1999:FIM 3.4 million), after FIM 5.0 mil-lion in direct taxes and a minorityinterest of FIM 5.8 million.
The consolidated shareholders’equity as at 31 December 2000 wasFIM 41.2 million, of which FIM 26.1million were distributable fundsincluded in non-restricted equity.
C O N S O L I DAT E D R E SU LTThe Group’s profit before extraordi-nary items and taxes was FIM 38.6million (FIM 38.7 million in 1999).The capital gains from investmentsmade by the main divisions in thecourse of their operations, which areincluded in the financial result,amounted to FIM 2.8 million (FIM3.2 million in 1999). Other operatingincome also includes FIM 3.5 million
in recurring income from operations.A quasi-provision item amounting
to FIM 2.6 million, which is due tothe change in the accounting policyof the Danish KILROY travels sub-group, was recorded under extraor-dinary items in 1999. Accordingly,the portion of the provision recog-nized as income, FIM 1.6 million,was booked in extraordinary items in 2000.
Return on investment exclusiveof earnings from investment operationsamounted to 18.8% (21.0% in 1999).Return on investment inclusive ofearnings from investment operationsamounted to 20.2% (22.0% in 1999).When calculating returns, FIM 3.1million in capital gains on the sale of the terminated operations, whichare recorded under other operatingincome, have been deducted fromthe financial result.
The as yet unaudited figure forthe unrealized capital return or changein value of the Student Union’s realestate for the financial year, calculatedby the Finnish Institute for RealEstate Economics, was approximatelyFIM 46 million (FIM 76 million in1999), and is included in the notesto the financial statements rather thanthe income statement. The marketvalue of the real estate (the present-day value of net rental income receiv-able in the future) was about FIM897 million at the beginning of theyear and around FIM 943 million at year’s end. The calculation ofmarket values is based on a 7.50%total return requirement and a 95%occupancy rate. The income return of the real estate (net rental yield asa percentage of the market value atthe beginning of the financial year)was 4.7% (4.5% in 1999). The capital
return ratio (change in the marketvalue since the beginning of the year,expressed as a percentage) was 4.4%(4.8% in 1999). The total incomereturn of the real estate was thus9.1% in 2000 (9.3% in 1999). The decline in the total incomereturn was due to the fact that theinvestors’ return requirement figureused in the calculation of the marketvalue rose by 0.8 percentage points(6.70%/7.50%) and the usage pur-poses of some of the facilities of theLeppäsuo Property were changed.
Exclusive of the effect of invest-ments made during the financial year,the total return of the City CentreProperty was 10.8%.
I N V E ST M E N T S
Gross investments by division:
Real Estate Division FIM 7.3 million
Travel Group FIM 29.7 million
Others FIM 3.6 million
Total FIM 40.6 million
Investments in basic renovations of real estate were earmarked for the modernization of the existingcapacity. The Travel subgroupinvested in the expansion of opera-tions and information technology,particularly in paving the way for e-commerce.
The Group’s net investmentstotalled FIM 32.8 million after salesof fixed assets amounting to FIM 7.8million.
F I NA N C I N GLiquid assets at year’s end totalledFIM 286.1 million (FIM 272.3 millionin 1999). The Group’s liquidity hasbeen good. The net amount of theprincipal of interest-bearing loans atyear-end was FIM 123.3 million
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 30
3130 31
(FIM 131.0 million in 1999). Netfinancing income amounted to FIM6.3 million (FIM 3.7 million in 1999).
The equity ratio at book valueswas 25.9% (23.9% in 1999). The asyet unaudited potential revaluationof the Group’s land areas, as given inthe notes to the financial statementsand figuring in solvency, leads to anequity ratio of 50.3% (50.0% in 1999).
The cash flow generated by theGroup’s ordinary business activitieswas a surplus of FIM 73.7 million.The Group’s cash-based net invest-ments were FIM 36.3 million. As of31 December 2000, the weightedeffective interest rate on the loans of the Finnish part of the Group was5.5% (4.7% in 1999).
P E R S O N N E LThe HYY Group employed an aver-age of 824 people during the reportyear, an increase of 44 employees onthe previous year. The growth of per-sonnel was primarily due to hiringby KILROY’s Nordic companies. Ofthe personnel, 322 were employed in Finland, 454 in other Nordic coun-tries and 48 elsewhere in Europe.
Trends in personnel, by division:
Division 2000 1999
Real Estate Division 12 13
Travel Group 562 532
Restaurants 213 195
Other companies 17 20
Parent company:
HYY Group Ltd 20 20
Group, total 824 780
G O I N G E A SY O N T H EE N V I R O N M E N TEcological activities in 2000 involvedthe implementation of a two-parttraining programme for the ecologi-cal supervisors of the Group’s busi-
ness locations. The training was car-ried out twice in the spring andautumn. People who had served asecological supervisors for at least halfa year and the close to 40 ecologicalsupervisors who completed the train-ing programme for ecological supervi-sors received a lump sum bonus in December. By paying this bonus,the corporate administration wishedto emphasize the importance of thesenew tasks.
The offices of the Group’s CityCentre Property and UniCafe Ylioppilas-aukio changed over to the use of“eco-electricity” at the beginning ofthe year. Seven per cent of the elec-tricity transmitted by HYY’s realestate was eco-electricity purchasedfor the Group’s units.
A second environmental audit wascarried out within the Group duringthe spring and the early autumn. Theaim was to assess the standard of theimplementation of the Group’s environ-mental programme and to carry out a basic review of the major develop-ment focuses of the environmentalprogramme. A key observation wasthat, although the HYY Group has for the most part been diligent in its handling of environmental compli-ance, the priority areas of the pro-gramme must be redefined if theservice sector companies are to main-tain their position at the head of thepack. Discussions on this matterwithin the administrative body of the Group’s owner started during thebeginning of the present year.
The working groups engaged inecological activities, the disseminationof information to the Group’s cus-tomers and ecological efforts having an effect on the corporate imagereceived especial attention when the
Group rewarded ecological efforts.
E U R OThe HYY Group already began prepa-rations for the implementation of theeuro in 1998 with the aim of makinga controlled changeover to the newcurrency. The euro will be adopted asthe accounting currency in April 2001.
P R E S I D E N T A N D AU D I TO RTapio Kiiskinen, M.Sc. (Econ.), wasthe President and CEO of the Groupfor the duration of the entire finan-cial year.
KPMG Wideri Oy Ab, AuthorizedPublic Accountants, were selected by the Representative Council of theStudent Union to act as the auditorsof the parent corporation, and theywere likewise selected by the AnnualGeneral Meeting to act as the audi-tors of HYY Group Ltd and its cor-porate group in 2000.
OW N E R S H I P O F T H EG R O U PThe Student Union of the Universityof Helsinki is a public sector entityhaving the right to autonomy. Its sta-tus is based on the Universities Act(645/1997) and the Student UnionDecree; the latter was passed on 6February 1998 on the basis of theUniversities Act and entered intoforce on 1 August 1998. As per therules ratified by the Student Unionon the basis of the decree, the realestate funds that are owned by theStudent Union, and which are sub-ject to the Accounting Act, functionas the parent corporation of a sepa-rate corporate body in the mannerdefined in the Accounting Act, thatis, the real estate funds are the parent
30
and FIM 0.4 million in Group contri-butions that were received and wererecorded in extraordinary items. Thecompany’s shareholders’ equity as at31 December 2000 was FIM 33.9million. The share of non-restrictedequity accounted for by fully distrib-utable funds was FIM 17.7 million.On the basis of the net profit for1999, a dividend of 8% was paid in2000 on share capital amounting toFIM 15.0 million.
Consolidated net sales amountedto FIM 1,358 million and grew by5% compared with the previous year.Other operating income amounted to FIM 7.9 million (1999: FIM 4.8million). Operating profit came in atFIM -0.8 million (1999: FIM 6.9 mil-lion). Profit before taxes and minor-ity interest was FIM 13.1 million(1999: FIM 12.8 million), after FIM12.4 million in financing income and FIM 1.6 million in extraordinaryincome. The net profit for the finan-cial year was FIM 2.3 million (1999:FIM 3.4 million), after FIM 5.0 mil-lion in direct taxes and a minorityinterest of FIM 5.8 million.
The consolidated shareholders’equity as at 31 December 2000 wasFIM 41.2 million, of which FIM 26.1million were distributable fundsincluded in non-restricted equity.
C O N S O L I DAT E D R E SU LTThe Group’s profit before extraordi-nary items and taxes was FIM 38.6million (FIM 38.7 million in 1999).The capital gains from investmentsmade by the main divisions in thecourse of their operations, which areincluded in the financial result,amounted to FIM 2.8 million (FIM3.2 million in 1999). Other operatingincome also includes FIM 3.5 million
in recurring income from operations.A quasi-provision item amounting
to FIM 2.6 million, which is due tothe change in the accounting policyof the Danish KILROY travels sub-group, was recorded under extraor-dinary items in 1999. Accordingly,the portion of the provision recog-nized as income, FIM 1.6 million,was booked in extraordinary items in 2000.
Return on investment exclusiveof earnings from investment operationsamounted to 18.8% (21.0% in 1999).Return on investment inclusive ofearnings from investment operationsamounted to 20.2% (22.0% in 1999).When calculating returns, FIM 3.1million in capital gains on the sale of the terminated operations, whichare recorded under other operatingincome, have been deducted fromthe financial result.
The as yet unaudited figure forthe unrealized capital return or changein value of the Student Union’s realestate for the financial year, calculatedby the Finnish Institute for RealEstate Economics, was approximatelyFIM 46 million (FIM 76 million in1999), and is included in the notesto the financial statements rather thanthe income statement. The marketvalue of the real estate (the present-day value of net rental income receiv-able in the future) was about FIM897 million at the beginning of theyear and around FIM 943 million at year’s end. The calculation ofmarket values is based on a 7.50%total return requirement and a 95%occupancy rate. The income return of the real estate (net rental yield asa percentage of the market value atthe beginning of the financial year)was 4.7% (4.5% in 1999). The capital
return ratio (change in the marketvalue since the beginning of the year,expressed as a percentage) was 4.4%(4.8% in 1999). The total incomereturn of the real estate was thus9.1% in 2000 (9.3% in 1999). The decline in the total incomereturn was due to the fact that theinvestors’ return requirement figureused in the calculation of the marketvalue rose by 0.8 percentage points(6.70%/7.50%) and the usage pur-poses of some of the facilities of theLeppäsuo Property were changed.
Exclusive of the effect of invest-ments made during the financial year,the total return of the City CentreProperty was 10.8%.
I N V E ST M E N T S
Gross investments by division:
Real Estate Division FIM 7.3 million
Travel Group FIM 29.7 million
Others FIM 3.6 million
Total FIM 40.6 million
Investments in basic renovations of real estate were earmarked for the modernization of the existingcapacity. The Travel subgroupinvested in the expansion of opera-tions and information technology,particularly in paving the way for e-commerce.
The Group’s net investmentstotalled FIM 32.8 million after salesof fixed assets amounting to FIM 7.8million.
F I NA N C I N GLiquid assets at year’s end totalledFIM 286.1 million (FIM 272.3 millionin 1999). The Group’s liquidity hasbeen good. The net amount of theprincipal of interest-bearing loans atyear-end was FIM 123.3 million
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 30
33
FIM 1 Jan.–31 Dec. 2000 1 Jan.–31 Dec. 1999
Net sales 1 416 721 956 1 348 394 334Other operating income 9 368 663 4 830 081
Materials and servicesRaw materials and consumables
Purchases during the financial year -1 078 031 825 -1 038 757 987Increase/decrease in inventories -560 146 1 743 941
External services -10 331 600 -9 895 909Personnel costs -152 836 726 -141 971 452Depreciation and value adjustments -28 901 553 -24 885 097Other operating expenses -123 167 653 -104 338 641Total -1 393 829 504 -1 318 105 145
Operating profit 32 261 115 35 119 269
Financial income and expenses
Income from investments in fixed assets 23 842 125 257Other interest and financial income 13 351 891 10 120 076Value adjustments of securities in current assets 0 -521 359Interest and other financial expenses -7 036 382 -6 163 263
Total 6 339 351 3 560 711
Profit before extraordinary items 38 600 466 38 679 981
Extraordinary itemsExtraordinary income 1 559 278 0Extraordinary expenses 0 -2 638 779
Total 1 559 278 -2 638 779
profit before taxes and minority interest 40 159 744 36 041 202
Income taxes -10 047 727 -11 473 768
Minority interest -5 800 998 -2 696 041
Net profit for the year 24 311 020 21 871 393
I N C O M E STAT E M E N T
32
corporation of the HYY Group. TheReal Estate Funds of HYY owns100% of HYY Group Ltd’s shares.HYY Group Ltd is the parent com-pany of its corporate group. The HYYGroup Ltd has a 100% or majorityholding in all its subsidiaries.
Funds of the Student UnionThe current funds required in theperformance of the Student Union’spurpose, as specified in the decree,are funds which are tied to the budgetof the public sector entity, and assuch are not subject to bookkeepingrequirements on the basis of theAccounting Act. The regulations con-cerning the Student Union (the decree,the rules of the Student Union, finan-cial rules) lay down rules concerningthe Funds of the Student Union andits budget, accounting, financial state-ments and auditing. The Funds ofthe Student Union and the HYYGroup are not consolidated. TheGroup’s distribution of profits is per-formed as a transfer of funds fromthe parent corporation’s non-restrictedequity to the contingency fund of theFunds of the Student Union.
The operating costs of the Fundsof the Student Union amounted toabout FIM 17.0 million in 2000. Ofthis amount, FIM 0.9 million wascovered with self-acquired funding,grants and income from collections,and FIM 5.6 million was coveredwith membership fees collected fromthe Student Union and FIM 0.7 mil-lion in interest on the contingencyfund. The Student Union member-ship fee – FIM 180/member/semes-ter – has remained unchanged since
1991. The FIM 9.8 million deficit ofthe Funds of the Student Union wascovered with funds from the HYYGroup’s contingency fund, which hadbeen enlarged by dividends.
On 31 December 2000, the Fundsof the Student Union had a balancesheet total of FIM 18.4 million. Ofthis amount, FIM 0.7 million wasaccounted for by the capital in themember loan fund that was coveredby the Funds of the Student Unionand FIM 12.2 million by other share-holders’ equity.
C H A N G E S I N T H E G R O U PST R U CT U R EUniversity Bookstore Finland Ltd’sbusiness operations were sold toSuomalainen Kirjakauppa Oy effec-tive 29 October 2000. The smart cardunit, which had previously been partof HYY Group Ltd’s operations, washived off to form Oy UniCard Ab on 1 November 2000.
The parent company of the sub-group, KILROY travels InternationalA/S, acquired the business operationsof Team Travel A/S on 1 January 2001.
N E A R -T E R M O U T LO O KKILROY travels was reorganizedinto three development areas(Individual travel, Group travel and Friendship travel/Benns Rejser)as from the beginning of 2001. Thecompany will continue to stimulateorganic growth actively, keeping thedevelopment focus of its multichan-nel strategy on e-commerce andtelephone service. Acquisitions andthe divestment of external parts ofthe development areas have not been
shut out as an option. Earnings in2001 are expected to improve sub-stantially on earnings in 2000, thanksespecially to the partnership agree-ments made at the end of 2000.
In the case of the real-estate busi-ness, the excellent market situationin the centre of Helsinki makes itpossible to increase rent levels whenrenewing agreements. Earnings fromthe rental of HYY’s real estate areexpected to improve further on theirlevel in 2000.
The catering operations of Uni-Cafe’s university restaurants and thefestive facilities of the Old StudentHouse are expected to break even inline with their earnings target. Theother companies (Academica Hotels,University Press Finland and UniCard)only have a slight impact on theGroup’s financial result.
The budgeted net sales for theentire Group in 2001 are about FIM1.6 billion (EUR 278.3 million). Thebudgeted profit before extraordinaryitems and taxes is about FIM 54 mil-lion (EUR 9.1 million).
D I V I D E N D SAccording to the consolidated balancesheet, non-restricted equity amounts toFIM 63,571,202, of which distributablefunds amount to FIM 58,503,219.According to the separate balancesheet of the Real Estate Funds of HYY,the fully distributable funds in non-restricted equity amount to FIM33,104,957. The Board of Directorsproposes that the Funds of the StudentUnion be paid a dividend of FIM13,500,000, with the remainder beingkept in the profit and loss account.
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 32
33
FIM 1 Jan.–31 Dec. 2000 1 Jan.–31 Dec. 1999
Net sales 1 416 721 956 1 348 394 334Other operating income 9 368 663 4 830 081
Materials and servicesRaw materials and consumables
Purchases during the financial year -1 078 031 825 -1 038 757 987Increase/decrease in inventories -560 146 1 743 941
External services -10 331 600 -9 895 909Personnel costs -152 836 726 -141 971 452Depreciation and value adjustments -28 901 553 -24 885 097Other operating expenses -123 167 653 -104 338 641Total -1 393 829 504 -1 318 105 145
Operating profit 32 261 115 35 119 269
Financial income and expenses
Income from investments in fixed assets 23 842 125 257Other interest and financial income 13 351 891 10 120 076Value adjustments of securities in current assets 0 -521 359Interest and other financial expenses -7 036 382 -6 163 263
Total 6 339 351 3 560 711
Profit before extraordinary items 38 600 466 38 679 981
Extraordinary itemsExtraordinary income 1 559 278 0Extraordinary expenses 0 -2 638 779
Total 1 559 278 -2 638 779
profit before taxes and minority interest 40 159 744 36 041 202
Income taxes -10 047 727 -11 473 768
Minority interest -5 800 998 -2 696 041
Net profit for the year 24 311 020 21 871 393
I N C O M E STAT E M E N T
32
corporation of the HYY Group. TheReal Estate Funds of HYY owns100% of HYY Group Ltd’s shares.HYY Group Ltd is the parent com-pany of its corporate group. The HYYGroup Ltd has a 100% or majorityholding in all its subsidiaries.
Funds of the Student UnionThe current funds required in theperformance of the Student Union’spurpose, as specified in the decree,are funds which are tied to the budgetof the public sector entity, and assuch are not subject to bookkeepingrequirements on the basis of theAccounting Act. The regulations con-cerning the Student Union (the decree,the rules of the Student Union, finan-cial rules) lay down rules concerningthe Funds of the Student Union andits budget, accounting, financial state-ments and auditing. The Funds ofthe Student Union and the HYYGroup are not consolidated. TheGroup’s distribution of profits is per-formed as a transfer of funds fromthe parent corporation’s non-restrictedequity to the contingency fund of theFunds of the Student Union.
The operating costs of the Fundsof the Student Union amounted toabout FIM 17.0 million in 2000. Ofthis amount, FIM 0.9 million wascovered with self-acquired funding,grants and income from collections,and FIM 5.6 million was coveredwith membership fees collected fromthe Student Union and FIM 0.7 mil-lion in interest on the contingencyfund. The Student Union member-ship fee – FIM 180/member/semes-ter – has remained unchanged since
1991. The FIM 9.8 million deficit ofthe Funds of the Student Union wascovered with funds from the HYYGroup’s contingency fund, which hadbeen enlarged by dividends.
On 31 December 2000, the Fundsof the Student Union had a balancesheet total of FIM 18.4 million. Ofthis amount, FIM 0.7 million wasaccounted for by the capital in themember loan fund that was coveredby the Funds of the Student Unionand FIM 12.2 million by other share-holders’ equity.
C H A N G E S I N T H E G R O U PST R U CT U R EUniversity Bookstore Finland Ltd’sbusiness operations were sold toSuomalainen Kirjakauppa Oy effec-tive 29 October 2000. The smart cardunit, which had previously been partof HYY Group Ltd’s operations, washived off to form Oy UniCard Ab on 1 November 2000.
The parent company of the sub-group, KILROY travels InternationalA/S, acquired the business operationsof Team Travel A/S on 1 January 2001.
N E A R -T E R M O U T LO O KKILROY travels was reorganizedinto three development areas(Individual travel, Group travel and Friendship travel/Benns Rejser)as from the beginning of 2001. Thecompany will continue to stimulateorganic growth actively, keeping thedevelopment focus of its multichan-nel strategy on e-commerce andtelephone service. Acquisitions andthe divestment of external parts ofthe development areas have not been
shut out as an option. Earnings in2001 are expected to improve sub-stantially on earnings in 2000, thanksespecially to the partnership agree-ments made at the end of 2000.
In the case of the real-estate busi-ness, the excellent market situationin the centre of Helsinki makes itpossible to increase rent levels whenrenewing agreements. Earnings fromthe rental of HYY’s real estate areexpected to improve further on theirlevel in 2000.
The catering operations of Uni-Cafe’s university restaurants and thefestive facilities of the Old StudentHouse are expected to break even inline with their earnings target. Theother companies (Academica Hotels,University Press Finland and UniCard)only have a slight impact on theGroup’s financial result.
The budgeted net sales for theentire Group in 2001 are about FIM1.6 billion (EUR 278.3 million). Thebudgeted profit before extraordinaryitems and taxes is about FIM 54 mil-lion (EUR 9.1 million).
D I V I D E N D SAccording to the consolidated balancesheet, non-restricted equity amounts toFIM 63,571,202, of which distributablefunds amount to FIM 58,503,219.According to the separate balancesheet of the Real Estate Funds of HYY,the fully distributable funds in non-restricted equity amount to FIM33,104,957. The Board of Directorsproposes that the Funds of the StudentUnion be paid a dividend of FIM13,500,000, with the remainder beingkept in the profit and loss account.
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 32
3534
FIM 31 Dec. 2000 31 Dec. 1999
Shareholders’ equity
Capital 17 250 000 17 250 000Retained earnings 39 260 182 33 102 858Net profit for the year 24 311 020 21 871 393Capital loans 80 000 80 000
Shareholders’ equity, total 80 901 202 72 304 251
Minority interest 24 916 828 19 450 840
Liabilities
Non-currentLoans from financial institutions 68 363 982 69 893 636Pension loans 17 074 021 18 907 549Debts to the owners 16 910 000 12 710 000Other debts 9 201 860 17 679 866Imputed deferred tax liabilities 11 031 534 11 067 943
122 581 396 130 258 995Current
Loans from financial institutions 6 227 694 6 228 058Pension loans 1 833 528 1 896 267Advances received 166 523 801 158 154 565Accounts payable 131 895 520 118 770 716Debts to the owners 42 191 160 163Other debts 22 374 757 18 811 725Accrued liabilities and prepaid income 17 126 062 15 844 018
346 023 554 319 865 511
Liabilities, total 468 604 950 450 124 507
Liabilities 574 422 980 541 879 598
B A L A N C E S H E E TL I A B I L I T I E S
FIM 31 Dec. 2000 31 Dec. 1999
Fixed assets
Intangible assetsIntangible rights 978 333 1 104 225Group goodwill 20 172 308 17 210 621Other capitalized expenditure 29 631 361 25 526 417Advance payments 4 701 209 0
55 483 210 43 841 264
Tangible assetsLand 4 804 295 4 804 295Buildings and structures 119 712 235 121 650 400Machinery and equipment of the buildings 7 686 971 8 489 383Machinery and equipment 32 764 236 30 191 373Other tangible assets 51 560 51 560Advance payments and acquisitions in progress 593 462 1 970 366
165 612 759 167 157 377
InvestmentsShares in Group undertakings 332 380 332 380Receivables from Group undertakings 4 175 541 4 252 836Other shares and participations 4 133 950 4 528 346
8 641 871 9 113 562
Fixed assets, total 229 737 841 220 112 203
Current assets
InventoriesCompleted products/goods 6 032 458 8 919 290Advance payments 25 894 78 273
6 058 352 8 997 563ReceivablesCurrent
Accounts receivable 35 484 423 19 852 798Receivables from Group undertakings 77 295 77 295Receivables from the owners 272 649 97 660Loan receivables 10 400 5 600Prepaid expenses and accrued income 16 723 156 20 460 026
52 567 923 40 493 379Securities included in fixed assets
Other shares and participations 0 393 156Other securities 59 537 490 73 116 076
59 537 490 73 509 232
Cash at bank and in hand 226 521 375 198 767 222
Current assets, total 344 685 140 321 767 395
Assets 574 422 980 541 879 598
B A L A N C E S H E E TA S S E T S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 34
3534
FIM 31 Dec. 2000 31 Dec. 1999
Shareholders’ equity
Capital 17 250 000 17 250 000Retained earnings 39 260 182 33 102 858Net profit for the year 24 311 020 21 871 393Capital loans 80 000 80 000
Shareholders’ equity, total 80 901 202 72 304 251
Minority interest 24 916 828 19 450 840
Liabilities
Non-currentLoans from financial institutions 68 363 982 69 893 636Pension loans 17 074 021 18 907 549Debts to the owners 16 910 000 12 710 000Other debts 9 201 860 17 679 866Imputed deferred tax liabilities 11 031 534 11 067 943
122 581 396 130 258 995Current
Loans from financial institutions 6 227 694 6 228 058Pension loans 1 833 528 1 896 267Advances received 166 523 801 158 154 565Accounts payable 131 895 520 118 770 716Debts to the owners 42 191 160 163Other debts 22 374 757 18 811 725Accrued liabilities and prepaid income 17 126 062 15 844 018
346 023 554 319 865 511
Liabilities, total 468 604 950 450 124 507
Liabilities 574 422 980 541 879 598
B A L A N C E S H E E TL I A B I L I T I E S
FIM 31 Dec. 2000 31 Dec. 1999
Fixed assets
Intangible assetsIntangible rights 978 333 1 104 225Group goodwill 20 172 308 17 210 621Other capitalized expenditure 29 631 361 25 526 417Advance payments 4 701 209 0
55 483 210 43 841 264
Tangible assetsLand 4 804 295 4 804 295Buildings and structures 119 712 235 121 650 400Machinery and equipment of the buildings 7 686 971 8 489 383Machinery and equipment 32 764 236 30 191 373Other tangible assets 51 560 51 560Advance payments and acquisitions in progress 593 462 1 970 366
165 612 759 167 157 377
InvestmentsShares in Group undertakings 332 380 332 380Receivables from Group undertakings 4 175 541 4 252 836Other shares and participations 4 133 950 4 528 346
8 641 871 9 113 562
Fixed assets, total 229 737 841 220 112 203
Current assets
InventoriesCompleted products/goods 6 032 458 8 919 290Advance payments 25 894 78 273
6 058 352 8 997 563ReceivablesCurrent
Accounts receivable 35 484 423 19 852 798Receivables from Group undertakings 77 295 77 295Receivables from the owners 272 649 97 660Loan receivables 10 400 5 600Prepaid expenses and accrued income 16 723 156 20 460 026
52 567 923 40 493 379Securities included in fixed assets
Other shares and participations 0 393 156Other securities 59 537 490 73 116 076
59 537 490 73 509 232
Cash at bank and in hand 226 521 375 198 767 222
Current assets, total 344 685 140 321 767 395
Assets 574 422 980 541 879 598
B A L A N C E S H E E TA S S E T S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 34
37
The parent corporation of the HYYGroup is the Real Estate Funds of the Student Union of the Universityof Helsinki, which is domiciled inHelsinki. The subgroup’s parent com-pany is HYY Group Ltd, which isdomiciled in Helsinki. Copies of theconsolidated financial statements ofthe aforementioned groups can behad from the head office of the HYY Group, Mannerheimintie 5 C,00100 Helsinki.
AC C O U N T I N GP R I N C I P L E SThe HYY Group’s financial statementshave been prepared in accordancewith the Accounting Act and Finnishstatutes and regulations.
ScopeThe consolidated financial statementsinclude all Finnish and foreign sub-sidiaries in which the parent corpora-tion owns more than 50% of the vot-ing rights either directly or indirectly.
Associated companiesCompanies in which the Group has a direct or indirect holding of 20-50%are classified as associated companies.Associated real estate companies arenot, however, included in the consoli-dated financial statements, as theyhave no effect on the Group’s finan-cial result or shareholders’ equity. At the end of the financial year, theGroup had no associated companieswith the exception of two associatedreal estate companies which fall out-side the consolidated financial state-ments.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
Accounting policiesThe consolidated financial statementsare presented in Finnish markkaa andthe figures are based on the originalacquisition cost. Book values basedon the acquisition cost have beenreduced to match the market valuewhen necessary. The Group’s internalbusiness transactions, distribution of profit, receivables and liabilitieshave been eliminated in their entirety.There were no internal margins thathad to be eliminated.
Intra-Group share ownership hasbeen eliminated using the acquisition-cost method. The difference betweenthe acquisition cost and shareholders’equity has been presented as Groupgoodwill, which will be depreciatedover the period in which it has afinancial effect. Five and ten yearshave been used as the depreciationperiods.
In the income statement, minorityinterest has been stated separately as a share of the profit for the finan-cial year, and in the balance sheet asa share of the shareholders’ equity.
Items denominated in foreigncurrencyThe income statements of foreignsubsidiaries have been converted toFinnish markkaa at the average ratefor the financial year, and the balancesheets at the rate on the closing date.Translation differences arising fromconversion and the elimination of theshareholders’ equity of foreign sub-sidiaries have been recorded in non-restricted equity. Receivables and lia-bilities denominated in foreign cur-rency have been valued at the rateon the closing date.
Net salesNet sales comprise capital gains fromthe sale of products and services, rentalincome from real estate operations andcharges for consumption less indirecttaxes and discounts and exchange ratelosses related to accounts receivable,plus exchange rate gains related toaccounts receivable.
Pensions and pension fundingThe pension security of the employ-ees of the Group’s Finnish compa-nies, including additional benefits,has been handled through externalinsurance companies. The pensionarrangements of foreign subsidiarieshave been handled in accordancewith local practices.
Extraordinary itemsPresented as extraordinary incomeand expenses are major non-recur-ring income and expense items thatare not part of ordinary businessoperations or are related to the capi-talization of a business that is beingwound down. Recurring operatingincome and expenses are included inthe items presented before operatingprofit.
Fixed assets and depreciationFixed assets are recorded in the bal-ance sheet at the variable acquisitioncost minus planned depreciation,which is calculated on a straight-linebasis from the economically usefullife of fixed assets.
36
FIM 1000 2000 1999
Ordinary operations
Cash inflowFrom sales 1 403 826 1 343 423
Cash paymentsPurchases -1 067 181 -971 141Wages and salaries -155 031 -144 055Other expenses -105 922 -95 560Extraordinary expenses 0 0Interest 6 482 3 294Taxes -8 484 -12 244
-1 330 136 -1 219 705
net cash flow from ordinary operations 73 690 123 718
Investments
Investment loans, decrease 77 77Investments in associated companies 0 4 084Investments in shares 0 1 236Investments in subsidiaries -5 856 -27 138Income from sale of business operations 3 371 0Income from sale of fixed assets 931 204Investments in fixed assets -34 797 -59 832Net cash flow from investments -36 273 -81 369
Financing
Non-current liabilities, decrease -12 024 19 760Quasi-equity financing, increase 265 409Loans receivable and deposits, change 4 430 3 140Securities included in fixed assets, increase 14 051 -42 389Dividends received 20 183Dividends paid to minority shareholders -1 802 -2 282Distribution of profit -13 500 -13 000Net cash flow from financing -8 560 -34 179
Net change in cash assets 28 857 8 170
Cash assets, 1 Jan. 198 767 142 654
Effect of exchange rate fluctuations -1 106 929
Effect of changes in the Group structure *) 0 47 015
Cash assets, 31 Dec. 226 521 198 767
*) The effect of changes in the Group structure comprises the cash assets of acquired companies at the time of acquisition.
CA S H F LOW STAT E M E N T
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 36
37
The parent corporation of the HYYGroup is the Real Estate Funds of the Student Union of the Universityof Helsinki, which is domiciled inHelsinki. The subgroup’s parent com-pany is HYY Group Ltd, which isdomiciled in Helsinki. Copies of theconsolidated financial statements ofthe aforementioned groups can behad from the head office of the HYY Group, Mannerheimintie 5 C,00100 Helsinki.
AC C O U N T I N GP R I N C I P L E SThe HYY Group’s financial statementshave been prepared in accordancewith the Accounting Act and Finnishstatutes and regulations.
ScopeThe consolidated financial statementsinclude all Finnish and foreign sub-sidiaries in which the parent corpora-tion owns more than 50% of the vot-ing rights either directly or indirectly.
Associated companiesCompanies in which the Group has a direct or indirect holding of 20-50%are classified as associated companies.Associated real estate companies arenot, however, included in the consoli-dated financial statements, as theyhave no effect on the Group’s finan-cial result or shareholders’ equity. At the end of the financial year, theGroup had no associated companieswith the exception of two associatedreal estate companies which fall out-side the consolidated financial state-ments.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
Accounting policiesThe consolidated financial statementsare presented in Finnish markkaa andthe figures are based on the originalacquisition cost. Book values basedon the acquisition cost have beenreduced to match the market valuewhen necessary. The Group’s internalbusiness transactions, distribution of profit, receivables and liabilitieshave been eliminated in their entirety.There were no internal margins thathad to be eliminated.
Intra-Group share ownership hasbeen eliminated using the acquisition-cost method. The difference betweenthe acquisition cost and shareholders’equity has been presented as Groupgoodwill, which will be depreciatedover the period in which it has afinancial effect. Five and ten yearshave been used as the depreciationperiods.
In the income statement, minorityinterest has been stated separately as a share of the profit for the finan-cial year, and in the balance sheet asa share of the shareholders’ equity.
Items denominated in foreigncurrencyThe income statements of foreignsubsidiaries have been converted toFinnish markkaa at the average ratefor the financial year, and the balancesheets at the rate on the closing date.Translation differences arising fromconversion and the elimination of theshareholders’ equity of foreign sub-sidiaries have been recorded in non-restricted equity. Receivables and lia-bilities denominated in foreign cur-rency have been valued at the rateon the closing date.
Net salesNet sales comprise capital gains fromthe sale of products and services, rentalincome from real estate operations andcharges for consumption less indirecttaxes and discounts and exchange ratelosses related to accounts receivable,plus exchange rate gains related toaccounts receivable.
Pensions and pension fundingThe pension security of the employ-ees of the Group’s Finnish compa-nies, including additional benefits,has been handled through externalinsurance companies. The pensionarrangements of foreign subsidiarieshave been handled in accordancewith local practices.
Extraordinary itemsPresented as extraordinary incomeand expenses are major non-recur-ring income and expense items thatare not part of ordinary businessoperations or are related to the capi-talization of a business that is beingwound down. Recurring operatingincome and expenses are included inthe items presented before operatingprofit.
Fixed assets and depreciationFixed assets are recorded in the bal-ance sheet at the variable acquisitioncost minus planned depreciation,which is calculated on a straight-linebasis from the economically usefullife of fixed assets.
36
FIM 1000 2000 1999
Ordinary operations
Cash inflowFrom sales 1 403 826 1 343 423
Cash paymentsPurchases -1 067 181 -971 141Wages and salaries -155 031 -144 055Other expenses -105 922 -95 560Extraordinary expenses 0 0Interest 6 482 3 294Taxes -8 484 -12 244
-1 330 136 -1 219 705
net cash flow from ordinary operations 73 690 123 718
Investments
Investment loans, decrease 77 77Investments in associated companies 0 4 084Investments in shares 0 1 236Investments in subsidiaries -5 856 -27 138Income from sale of business operations 3 371 0Income from sale of fixed assets 931 204Investments in fixed assets -34 797 -59 832Net cash flow from investments -36 273 -81 369
Financing
Non-current liabilities, decrease -12 024 19 760Quasi-equity financing, increase 265 409Loans receivable and deposits, change 4 430 3 140Securities included in fixed assets, increase 14 051 -42 389Dividends received 20 183Dividends paid to minority shareholders -1 802 -2 282Distribution of profit -13 500 -13 000Net cash flow from financing -8 560 -34 179
Net change in cash assets 28 857 8 170
Cash assets, 1 Jan. 198 767 142 654
Effect of exchange rate fluctuations -1 106 929
Effect of changes in the Group structure *) 0 47 015
Cash assets, 31 Dec. 226 521 198 767
*) The effect of changes in the Group structure comprises the cash assets of acquired companies at the time of acquisition.
CA S H F LOW STAT E M E N T
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 36
3938
FIM 2000 1999
Net sales Net sales by divisionReal Estate Division 66 715 221 60 348 578Travel Group 1 253 554 120 1 190 872 966Restaurants 78 166 957 73 041 079Other companies 18 285 658 24 131 711Total 1 416 721 956 1 348 394 334
Net sales by market areaFinland 304 737 689 291 306 663Other Nordic countries 969 316 008 940 146 581Other European countries 139 242 223 114 903 632Other 3 426 036 2 037 457Total 1 416 721 956 1 348 394 334
Other operating income
Capital gains from sales of investments in non-current fixed assets 2 788 817 3 195 862Other capital gains from continuous operations 3 506 945 839 777Capital gains from the sale of terminated business functions 3 072 901 794 442Total 9 368 663 4 830 081
Notes concerning personnel and members of administrative bodies
Salaries, remuneration and other compensation paid to membersof the Board of Directors and the President*) 6 791 156 6 561 582Salaries 125 989 058 115 455 859Pension costs 6 752 670 6 597 148Other personnel costs 13 303 842 13 356 862Personnel costs in the income statement 152 836 726 141 971 452
*) The salaries and remuneration of the Boards of Directors and Presidents/Managing Directors include the salariesand remuneration paid to the membersof 16 Boards of Directors (1999: 16Boards of Directors) and 9 Presidents/Managing Directors (1999:9 Presidents/Managing Directors). The remunerationpaid to the Board of Directors of theStudent Union, which is the parentcorporation of the Group and acts as
a public sector Board of Directors, are not included in the figures becausesuch remuneration is paid from theFunds of the Student Union in the first instance. Part of these remunera-tions have been invoiced from the HYY Group and are included in otheroperating expenses. The invoicedremunerations are not included in the notes concerning the salaries paidto Board members and the President.
As part of his pay structure, theManaging Director of the Danish sub-group has been granted a scheme thatis based on the trend in the shareprices; the parent company of the sub-group is responsible for the scheme,which is intended to be consummatedin 2004. The scheme involves a maxi-mum of 3.6% of the shares outstandingat the time of signing and hinges onthe shares outperforming the targetfigure for their market capitalization.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
The recommended useful lifeperiods used in planned depreciationare:
Incorporation and
adjusting expenses 3 years
Intangible rights 3–10 years
Group goodwill 5–10 years
Other capitalized expenditure 3–5 years
Buildings 30–40 years
Machinery and equipment
of the buildings 5–15 years
Machinery and equipment 3–5 years
In line with the principle of essential-ity, which is part of generally acceptedaccounting practices, minor fixedassets – such as computers with anestimated economically useful life ofunder three years and mobile phones– have been recorded directly asannual costs. Land areas have notbeen depreciated. The securitiesincluded in fixed assets have beenvalued at the acquisition cost or, if their market value has permanentlyfallen, at the lower market value.
Capital gains and losses from thesale of fixed assets are included inoperating profit.
Other capitalized expenditureprimarily includes the cost of therenovation of rental premises, wherethe depreciation period is the probable
rental period at most. In the RealEstate Division, the other capitalizedexpenditure comprises such renova-tion costs of rented premises as havebeen agreed, during rent agreementnegotiations, to be the responsibilityof the landlord and whose effect hasbeen accounted for when determin-ing the rent. In those cases, the depre-ciation period is generally the dura-tion of the rental period.
Separate information on the mar-ket values of fixed assets, their poten-tial revaluation and collateral value isprovided in the notes to the balancesheet. Information on capital return,or changes in value, during the finan-cial year is presented separately inthe notes to the income statement.
Current assetsInventories have been valued using a weighted average price. In the caseof self-manufactured products, theprice includes the variable wage andraw material costs of production. Theupper limit used in the valuation ofinventory assets is the probable saleprice and the probable acquisitioncost.
Securities included in fixed assetsare valued at acquisition cost or theprobable sale price on the closing date.
AppropriationsAppropriations are those deprecia-tion differences causing a change inthe imputed deferred tax liabilitywhich is presented in the consoli-dated financial statements under thetaxes for the financial year. In theconsolidated balance sheet, accumu-lated appropriations have beendivided into a tax liability and non-restricted equity.
Advances receivedThe bulk of the Travel subgroup’snet sales is generated by the sub-group’s air ticket system – a systemwhich is unusual in the travel busi-ness – where customers pay a consid-erable amount in advance. Presentedas advances received is the share ofadvance airfares paid by customers,who have the right to a refund, forwhich accounts receivable had notmaterialized between the subgroupand the airlines by the closing date,or a total of FIM 128.9 million(1999: FIM 126.0 million). Theadvances received are presented incurrent liabilities under the liabilitiesside of the balance sheet.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 38
3938
FIM 2000 1999
Net sales Net sales by divisionReal Estate Division 66 715 221 60 348 578Travel Group 1 253 554 120 1 190 872 966Restaurants 78 166 957 73 041 079Other companies 18 285 658 24 131 711Total 1 416 721 956 1 348 394 334
Net sales by market areaFinland 304 737 689 291 306 663Other Nordic countries 969 316 008 940 146 581Other European countries 139 242 223 114 903 632Other 3 426 036 2 037 457Total 1 416 721 956 1 348 394 334
Other operating income
Capital gains from sales of investments in non-current fixed assets 2 788 817 3 195 862Other capital gains from continuous operations 3 506 945 839 777Capital gains from the sale of terminated business functions 3 072 901 794 442Total 9 368 663 4 830 081
Notes concerning personnel and members of administrative bodies
Salaries, remuneration and other compensation paid to membersof the Board of Directors and the President*) 6 791 156 6 561 582Salaries 125 989 058 115 455 859Pension costs 6 752 670 6 597 148Other personnel costs 13 303 842 13 356 862Personnel costs in the income statement 152 836 726 141 971 452
*) The salaries and remuneration of the Boards of Directors and Presidents/Managing Directors include the salariesand remuneration paid to the membersof 16 Boards of Directors (1999: 16Boards of Directors) and 9 Presidents/Managing Directors (1999:9 Presidents/Managing Directors). The remunerationpaid to the Board of Directors of theStudent Union, which is the parentcorporation of the Group and acts as
a public sector Board of Directors, are not included in the figures becausesuch remuneration is paid from theFunds of the Student Union in the first instance. Part of these remunera-tions have been invoiced from the HYY Group and are included in otheroperating expenses. The invoicedremunerations are not included in the notes concerning the salaries paidto Board members and the President.
As part of his pay structure, theManaging Director of the Danish sub-group has been granted a scheme thatis based on the trend in the shareprices; the parent company of the sub-group is responsible for the scheme,which is intended to be consummatedin 2004. The scheme involves a maxi-mum of 3.6% of the shares outstandingat the time of signing and hinges onthe shares outperforming the targetfigure for their market capitalization.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
The recommended useful lifeperiods used in planned depreciationare:
Incorporation and
adjusting expenses 3 years
Intangible rights 3–10 years
Group goodwill 5–10 years
Other capitalized expenditure 3–5 years
Buildings 30–40 years
Machinery and equipment
of the buildings 5–15 years
Machinery and equipment 3–5 years
In line with the principle of essential-ity, which is part of generally acceptedaccounting practices, minor fixedassets – such as computers with anestimated economically useful life ofunder three years and mobile phones– have been recorded directly asannual costs. Land areas have notbeen depreciated. The securitiesincluded in fixed assets have beenvalued at the acquisition cost or, if their market value has permanentlyfallen, at the lower market value.
Capital gains and losses from thesale of fixed assets are included inoperating profit.
Other capitalized expenditureprimarily includes the cost of therenovation of rental premises, wherethe depreciation period is the probable
rental period at most. In the RealEstate Division, the other capitalizedexpenditure comprises such renova-tion costs of rented premises as havebeen agreed, during rent agreementnegotiations, to be the responsibilityof the landlord and whose effect hasbeen accounted for when determin-ing the rent. In those cases, the depre-ciation period is generally the dura-tion of the rental period.
Separate information on the mar-ket values of fixed assets, their poten-tial revaluation and collateral value isprovided in the notes to the balancesheet. Information on capital return,or changes in value, during the finan-cial year is presented separately inthe notes to the income statement.
Current assetsInventories have been valued using a weighted average price. In the caseof self-manufactured products, theprice includes the variable wage andraw material costs of production. Theupper limit used in the valuation ofinventory assets is the probable saleprice and the probable acquisitioncost.
Securities included in fixed assetsare valued at acquisition cost or theprobable sale price on the closing date.
AppropriationsAppropriations are those deprecia-tion differences causing a change inthe imputed deferred tax liabilitywhich is presented in the consoli-dated financial statements under thetaxes for the financial year. In theconsolidated balance sheet, accumu-lated appropriations have beendivided into a tax liability and non-restricted equity.
Advances receivedThe bulk of the Travel subgroup’snet sales is generated by the sub-group’s air ticket system – a systemwhich is unusual in the travel busi-ness – where customers pay a consid-erable amount in advance. Presentedas advances received is the share ofadvance airfares paid by customers,who have the right to a refund, forwhich accounts receivable had notmaterialized between the subgroupand the airlines by the closing date,or a total of FIM 128.9 million(1999: FIM 126.0 million). Theadvances received are presented incurrent liabilities under the liabilitiesside of the balance sheet.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 38
4140
FIM 2000 1999
Extraordinary itemsExtraordinary income and expensesChange in accounting principles*) 1 559 278 -2 638 779
*) In 1999, an item amounting to FIM 2.6 million was recorded in extraordinary expenses due to the change in the accountingprinciples of the KILROY travels subgroup. Accordingly, the share of this sum recognized as income in 2000 has been recordedin extraordinary income.
FIM 2000 1999
Direct taxesReal estate taxes 2 519 002 2 302 995Income taxes on ordinary operations
For the current year 8 582 902 9 817 433For the previous year -1 053 488 -18 699
Change in the imputed deferred tax liability -689 -627 961Direct taxes, total 10 047 727 11 473 768
The revaluation or the capital return of the central real estate which is included in the parent com-pany’s fixed assets but is not included in the income statement
Market value Market value Capital return Capital return31 Dec. 2000 31 Dec. 1999 (revaluation) ratio, %
FIM 2000
City Centre Property 810 951 803 767 090 030 43 861 773 5.0Leppäsuo Property 132 124 781 130 130 978 1 993 803 0.6Market value, total 943 076 584 897 221 008Capital return, total 45 855 576Average capital return ratio, % 4.4
In accordance with the accounting formula, the activated investment expenditure on construction works will be deducted in itsentirety from the revaluation during its year of completion when calculating the capital return. In 2000, the investment expendi-ture deducted from the revaluation amounted to FIM 6.1 million for the City Centre Property and FIM 1.2 million for theLeppäsuo Property.
Total return of the central real estateIncome return, Capital return Total return,
% ratio, % ratio, %2000 1999 2000 1999 2000 1999
City Centre Property 4.9 5.0 5.0 5.1 10.0 10.1Leppäsuo Property 3.3 1.0 0.6 3.0 3.9 4.0Average (weighted) 4.7 4.5 4.4 4.8 9.1 9.3
Exclusive of the effect of investments made in 2000, the total return of the City Centre Property was 10.8%.
The income return is the net rental yield as a percentage of the market value at the beginning of the financial year.The capital return ratio is the change in the market value as a percentage since the beginning of the year.Total return = Income return + Capital return.The notes to the balance sheet present detailed information on the properties and the calculation of their capitalized values andyield in accordance with the formulae of the Finnish Institute for Real Estate Economics.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
Average number of people employed by the Group Real Estate Division 12 13Travel Group 562 532Restaurants 216 197Other 34 38
824 780
In Finland 322 304In other Nordic countries 454 429In other European countries 48 47
824 780Pension commitments and loans granted to management or shareholdersThe retirement age of Managing Directors and Directors of companies belonging to the HYY Group has been set at 60. TheGroup’s President and CEO is entitled to retire at the age of 55. There are no pension commitments to Board members.
No loans have been granted to management or shareholders with the exception of loans granted to the only shareholder ofHYY Group Ltd, the Real Estate Funds of HYY, which pledges collateral directly to the party granting the loan; HYY Group Ltdgrants these loans in the manner specified in the description of its field of business in its Articles of Association. In addition, onthe grounds of point 3 of section 12:7.2 of the Companies Act, HYY Group Ltd may grant a cash loan to the Real Estate Fundsof HYY, disregarding the restrictions in section 12:7.1 of the Companies Act.
FIM 2000 1999
Depreciation and value adjustmentsDepreciation by type of fixed assetIntangible assets
Intangible rights 422 456 474 240Group goodwill 2 243 253 3 074 648Other capitalized expenditure 5 508 455 3 284 187
Tangible assetsBuildings 5 421 118 4 936 877Machinery and equipment of the buildings 1 049 027 1 152 882Machinery and equipment 14 257 244 11 962 263
Total 28 901 553 24 885 097
Financial income and expensesIncome from long-term investmentsDividend income
From others 23 842 125 257Other interest and financial income
From Group undertakings 172 432 175 524From others 13 179 459 9 944 552
Interest and financial income, total 13 375 733 10 245 333
Value adjustments of investmentsValue adjustments of securities included in financial assets 0 -521 359
Interest and other financial expenses To others -7 036 382 -6 163 263
Interest and other financial expenses, total -7 036 382 -6 684 622
Financial income and expenses, total 6 339 351 3 560 711
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 40
4140
FIM 2000 1999
Extraordinary itemsExtraordinary income and expensesChange in accounting principles*) 1 559 278 -2 638 779
*) In 1999, an item amounting to FIM 2.6 million was recorded in extraordinary expenses due to the change in the accountingprinciples of the KILROY travels subgroup. Accordingly, the share of this sum recognized as income in 2000 has been recordedin extraordinary income.
FIM 2000 1999
Direct taxesReal estate taxes 2 519 002 2 302 995Income taxes on ordinary operations
For the current year 8 582 902 9 817 433For the previous year -1 053 488 -18 699
Change in the imputed deferred tax liability -689 -627 961Direct taxes, total 10 047 727 11 473 768
The revaluation or the capital return of the central real estate which is included in the parent com-pany’s fixed assets but is not included in the income statement
Market value Market value Capital return Capital return31 Dec. 2000 31 Dec. 1999 (revaluation) ratio, %
FIM 2000
City Centre Property 810 951 803 767 090 030 43 861 773 5.0Leppäsuo Property 132 124 781 130 130 978 1 993 803 0.6Market value, total 943 076 584 897 221 008Capital return, total 45 855 576Average capital return ratio, % 4.4
In accordance with the accounting formula, the activated investment expenditure on construction works will be deducted in itsentirety from the revaluation during its year of completion when calculating the capital return. In 2000, the investment expendi-ture deducted from the revaluation amounted to FIM 6.1 million for the City Centre Property and FIM 1.2 million for theLeppäsuo Property.
Total return of the central real estateIncome return, Capital return Total return,
% ratio, % ratio, %2000 1999 2000 1999 2000 1999
City Centre Property 4.9 5.0 5.0 5.1 10.0 10.1Leppäsuo Property 3.3 1.0 0.6 3.0 3.9 4.0Average (weighted) 4.7 4.5 4.4 4.8 9.1 9.3
Exclusive of the effect of investments made in 2000, the total return of the City Centre Property was 10.8%.
The income return is the net rental yield as a percentage of the market value at the beginning of the financial year.The capital return ratio is the change in the market value as a percentage since the beginning of the year.Total return = Income return + Capital return.The notes to the balance sheet present detailed information on the properties and the calculation of their capitalized values andyield in accordance with the formulae of the Finnish Institute for Real Estate Economics.
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E I N C O M E STAT E M E N T
Average number of people employed by the Group Real Estate Division 12 13Travel Group 562 532Restaurants 216 197Other 34 38
824 780
In Finland 322 304In other Nordic countries 454 429In other European countries 48 47
824 780Pension commitments and loans granted to management or shareholdersThe retirement age of Managing Directors and Directors of companies belonging to the HYY Group has been set at 60. TheGroup’s President and CEO is entitled to retire at the age of 55. There are no pension commitments to Board members.
No loans have been granted to management or shareholders with the exception of loans granted to the only shareholder ofHYY Group Ltd, the Real Estate Funds of HYY, which pledges collateral directly to the party granting the loan; HYY Group Ltdgrants these loans in the manner specified in the description of its field of business in its Articles of Association. In addition, onthe grounds of point 3 of section 12:7.2 of the Companies Act, HYY Group Ltd may grant a cash loan to the Real Estate Fundsof HYY, disregarding the restrictions in section 12:7.1 of the Companies Act.
FIM 2000 1999
Depreciation and value adjustmentsDepreciation by type of fixed assetIntangible assets
Intangible rights 422 456 474 240Group goodwill 2 243 253 3 074 648Other capitalized expenditure 5 508 455 3 284 187
Tangible assetsBuildings 5 421 118 4 936 877Machinery and equipment of the buildings 1 049 027 1 152 882Machinery and equipment 14 257 244 11 962 263
Total 28 901 553 24 885 097
Financial income and expensesIncome from long-term investmentsDividend income
From others 23 842 125 257Other interest and financial income
From Group undertakings 172 432 175 524From others 13 179 459 9 944 552
Interest and financial income, total 13 375 733 10 245 333
Value adjustments of investmentsValue adjustments of securities included in financial assets 0 -521 359
Interest and other financial expenses To others -7 036 382 -6 163 263
Interest and other financial expenses, total -7 036 382 -6 684 622
Financial income and expenses, total 6 339 351 3 560 711
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 40
4342
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Tangible assets
LandAcquisition cost, 1 Jan. 4 804 295 4 804 295Book value, 31 Dec. 4 804 295 4 804 295
BuildingsAcquisition cost, 1 Jan. 207 118 482 177 636 411
Increases 2 215 811 24 421 751Transfers from acquisitions in progress 1 272 642 5 055 950Exchange rate differences -11 207 4 369
Acquisition cost, 31 Dec. 210 595 728 207 118 482Accumulated depreciation, 1 Jan. -85 462 782 -80 911 813Accumulated depreciation of decreases and transfers 0 380 376Depreciation for the financial year -5 420 711 -4 936 646
Accumulated depreciation, 31 Dec. -90 883 493 -85 468 083Book value, 31 Dec. 119 712 235 121 650 400
Machinery and equipment of the buildingsAcquisition cost, 1 Jan. 16 773 418 13 095 331
Increases 246 615 0Transfers between asset groups 0 3 678 087
Acquisition cost, 31 Dec. 17 020 033 16 773 418Accumulated depreciation, 1 Jan. -8 284 035 -4 603 344Accumulated depreciation of decreases and transfers 0 -2 527 809Depreciation for the financial year -1 049 027 -1 152 882
Accumulated depreciation, 31 Dec. -9 333 062 -8 284 035Book value, 31 Dec. 7 686 971 8 489 383
Machinery and equipmentAcquisition cost, 1 Jan. 76 000 046 62 702 131
Increases 17 904 501 19 059 675Decreases -3 984 522 -9 973 586Translation difference 0 7 016 976Transfers between asset groups 0 -3 952 181Exchange rate differences -489 703 1 210 250
Acquisition cost, 31 Dec. 89 430 322 76 063 264Accumulated depreciation, 1 Jan. -45 476 816 -42 456 140Accumulated depreciation of decreases and transfers 3 052 699 8 491 674Depreciation for the financial year -14 241 969 -11 907 425
Accumulated depreciation, 31 Dec. -56 666 086 -45 871 891Book value, 31 Dec. 32 764 236 30 191 373
Other tangible assetsAcquisition cost, 1 Jan. 51 560 51 560Book value, 31 Dec. 51 560 51 560
Advance payments and acquisitions in progressAcquisition cost, 1 Jan. 1 970 366 8 466 905
Increases 430 085 1 806 989Decreases 0 -38 227Transfers to buildings and other capitalized expenditure -1 806 989 -8 265 301
Book value, 31 Dec. 593 462 1 970 366
The changeover to planned depreciation was made over the years, with fixed asset groups being included gradually; planneddepreciation was applied to the last of these groups on 1 January 1993. Finnish properties began to use depreciation accordingto plan in 1982.
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Fixed assets
Intangible assets
Intangible rightsAcquisition cost, 1 Jan. 2 251 032 1 775 706
Increases 734 078 475 326Decreases -1 326 671 0
Acquisition cost, 31 Dec. 1 658 439 2 251 032Accumulated depreciation, 1 Jan. -1 146 808 -672 567Accumulated depreciation of decreases and transfers 889 158 0Depreciation for the financial year -422 456 -474 240
Accumulated depreciation, 31 Dec. -680 106 -1 146 807Book value, 31 Dec. 978 333 1 104 225
Group goodwillAcquisition cost, 1 Jan. 19 249 938 13 488 712
Increases 5 250 751 19 181 277Exchange rate differences -110 294 0
Acquisition cost, 31 Dec. 24 390 395 32 669 989Accumulated depreciation, 1 Jan. -1 974 834 -12 384 719Depreciation for the financial year -2 243 253 -3 074 648
Accumulated depreciation, 31 Dec. -4 218 087 -15 459 368Book value, 31 Dec. 20 172 308 17 210 621
Other capitalized expenditureAcquisition cost, 1 Jan. 39 042 547 21 748 835
Increases 9 244 428 13 341 629Decreases -512 914 0Translation difference 0 250 122Transfers from acquisitions in progress 534 348 3 483 444Exchange rate differences -104 624 218 517
Acquisition cost, 31 Dec. 48 203 785 39 042 547Accumulated depreciation, 1 Jan. -13 439 252 -9 474 427Accumulated depreciation of decreases and transfers 372 586 -758 354Depreciation for the financial year -5 505 758 -3 283 347
Accumulated depreciation, 31 Dec. -18 572 424 -13 516 129Book value, 31 Dec. 29 631 361 25 526 418
Advance paymentsAcquisition cost, 1 Jan. 0 0
Increases 4 701 209 0Acquisition cost, 31 Dec. 4 701 209 0Book value, 31 Dec. 4 701 209 0
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 42
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FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Tangible assets
LandAcquisition cost, 1 Jan. 4 804 295 4 804 295Book value, 31 Dec. 4 804 295 4 804 295
BuildingsAcquisition cost, 1 Jan. 207 118 482 177 636 411
Increases 2 215 811 24 421 751Transfers from acquisitions in progress 1 272 642 5 055 950Exchange rate differences -11 207 4 369
Acquisition cost, 31 Dec. 210 595 728 207 118 482Accumulated depreciation, 1 Jan. -85 462 782 -80 911 813Accumulated depreciation of decreases and transfers 0 380 376Depreciation for the financial year -5 420 711 -4 936 646
Accumulated depreciation, 31 Dec. -90 883 493 -85 468 083Book value, 31 Dec. 119 712 235 121 650 400
Machinery and equipment of the buildingsAcquisition cost, 1 Jan. 16 773 418 13 095 331
Increases 246 615 0Transfers between asset groups 0 3 678 087
Acquisition cost, 31 Dec. 17 020 033 16 773 418Accumulated depreciation, 1 Jan. -8 284 035 -4 603 344Accumulated depreciation of decreases and transfers 0 -2 527 809Depreciation for the financial year -1 049 027 -1 152 882
Accumulated depreciation, 31 Dec. -9 333 062 -8 284 035Book value, 31 Dec. 7 686 971 8 489 383
Machinery and equipmentAcquisition cost, 1 Jan. 76 000 046 62 702 131
Increases 17 904 501 19 059 675Decreases -3 984 522 -9 973 586Translation difference 0 7 016 976Transfers between asset groups 0 -3 952 181Exchange rate differences -489 703 1 210 250
Acquisition cost, 31 Dec. 89 430 322 76 063 264Accumulated depreciation, 1 Jan. -45 476 816 -42 456 140Accumulated depreciation of decreases and transfers 3 052 699 8 491 674Depreciation for the financial year -14 241 969 -11 907 425
Accumulated depreciation, 31 Dec. -56 666 086 -45 871 891Book value, 31 Dec. 32 764 236 30 191 373
Other tangible assetsAcquisition cost, 1 Jan. 51 560 51 560Book value, 31 Dec. 51 560 51 560
Advance payments and acquisitions in progressAcquisition cost, 1 Jan. 1 970 366 8 466 905
Increases 430 085 1 806 989Decreases 0 -38 227Transfers to buildings and other capitalized expenditure -1 806 989 -8 265 301
Book value, 31 Dec. 593 462 1 970 366
The changeover to planned depreciation was made over the years, with fixed asset groups being included gradually; planneddepreciation was applied to the last of these groups on 1 January 1993. Finnish properties began to use depreciation accordingto plan in 1982.
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Fixed assets
Intangible assets
Intangible rightsAcquisition cost, 1 Jan. 2 251 032 1 775 706
Increases 734 078 475 326Decreases -1 326 671 0
Acquisition cost, 31 Dec. 1 658 439 2 251 032Accumulated depreciation, 1 Jan. -1 146 808 -672 567Accumulated depreciation of decreases and transfers 889 158 0Depreciation for the financial year -422 456 -474 240
Accumulated depreciation, 31 Dec. -680 106 -1 146 807Book value, 31 Dec. 978 333 1 104 225
Group goodwillAcquisition cost, 1 Jan. 19 249 938 13 488 712
Increases 5 250 751 19 181 277Exchange rate differences -110 294 0
Acquisition cost, 31 Dec. 24 390 395 32 669 989Accumulated depreciation, 1 Jan. -1 974 834 -12 384 719Depreciation for the financial year -2 243 253 -3 074 648
Accumulated depreciation, 31 Dec. -4 218 087 -15 459 368Book value, 31 Dec. 20 172 308 17 210 621
Other capitalized expenditureAcquisition cost, 1 Jan. 39 042 547 21 748 835
Increases 9 244 428 13 341 629Decreases -512 914 0Translation difference 0 250 122Transfers from acquisitions in progress 534 348 3 483 444Exchange rate differences -104 624 218 517
Acquisition cost, 31 Dec. 48 203 785 39 042 547Accumulated depreciation, 1 Jan. -13 439 252 -9 474 427Accumulated depreciation of decreases and transfers 372 586 -758 354Depreciation for the financial year -5 505 758 -3 283 347
Accumulated depreciation, 31 Dec. -18 572 424 -13 516 129Book value, 31 Dec. 29 631 361 25 526 418
Advance paymentsAcquisition cost, 1 Jan. 0 0
Increases 4 701 209 0Acquisition cost, 31 Dec. 4 701 209 0Book value, 31 Dec. 4 701 209 0
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 42
4544
Revaluation contingency of fixed assets (land areas)The plot of the city centre property (the Kaivopiha Commercial Building), which is owned by the parent corporation of theGroup and has a land area of 8,984 m2 and building rights (commercial and office premises) of 38,141 m2, meets the FinnishAccounting Act’s requirements for revaluation contingency. The usable taxable value of the plot was FIM 232,434,048 in 2000.The book value of the plot as at 31 December 2000 was FIM 4,229,570. Using the cost of the building rights of commercial andoffice plots in the district as the reference value, the value of the plot exceeds its taxable value. The revaluation contingencyindicated in the notes to the financial statements as at 31 December 2000 is FIM 200,000,000.
Seurity value of the securable assetsThe security value (market value – realization reserve) of the securable assets in the Group’s fixed assets is about FIM800,000,000. At least 30% of the market value of each asset item has been used as a realization reserve. Included in the secur-able assets are not only the Finnish real estate, housing shares and cooperative housing shares, but also the value of the sharelot in KILROY travels International A/S. The calculation also includes a lesser amount of marketable Finnish securities. Liabilitiesallocated to securable assets, i.e. mortgages and pledges, amounted to a total of FIM 94,908,931 on 31 December 2000.
Market value of securities
FIM Book value Market value DifferenceQuoted shares 101 188 1 753 877 1 652 689
FIM 2000 1999
Current assets
Receivables
Current receivablesReceivables from Group undertakings
Loan receivables 77 295 77 295Receivables from the owner
Account receivables 233 499 86 410Prepaid expenses and accrued income 39 150 11 250
272 649 97 660
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Investments
Shares in Group undertakings
Acquisition cost, 1 Jan. 332 380 3 403 603Decreases 0 -1 746 746Transfers to other shares 0 -1 324 476
Acquisition cost, 31 Dec. 332 380 332 380Book value, 31 Dec. 332 380 332 380
Receivables from Group undertakings
Acquisition cost, 1 Jan. 4 252 836 4 330 131Decreases -77 295 -77 295
Book value, 31 Dec. 4 175 541 4 252 836
Other shares and participations
Acquisition cost, 1 Jan. 4 528 346 5 915 571Increases 0 846 906Decreases -393 415 -3 559 001Transfers from shares in Group undertakings 0 1 324 476Exchange rate differences -981 395
Acquisition cost, 31 Dec. 4 133 950 4 528 346Book value, 31 Dec. 4 133 950 4 528 346
Market values of fixed assets*) insofar as they significantly deviate from the book values
City Centre Property 810 951 803 767 090 030Mannerheimintie 5, Kaivokatu 10, Aleksanterinkatu 23Land area: 8,984 m2
Building rights: 38,141 m2
Commercial and office premisesLeasable area: 31,693 m2, Parking places: 70 kpl
Leppäsuo Property 132 124 781 130 130 978Leppäsuonkatu 9, Hietaniemenkatu 14Land area: 6,882 m2
Building rights: 18,570 m2
Residential, library and commercial premisesLeasable area: 15,544 m2, Parking places: 65 kplMarket value, total 943 076 584 897 221 008
Equivalent book value, total 130 214 037 132 718 466
Difference between market values and book values 812 862 547 764 502 542
The combined market value of other real estate as well as real estate and premises based on share ownership equals at leasttheir combined book value, which is FIM 5,929,082.
*) In accordance with the formula of the Finnish Institute for Real Estate Economics, the market value has been calculated asbeing the present value of future net rental income returns. The market values as at 31 Dec. 2000 have been calculated on thebasis of a 7.50% total return requirement and a 95% occupancy rate. The total return requirement is based on the 2000 intereston the government’s 10-year bonds, 5.50, with an added risk premium of 2.00%. The previous year's market values have beencalculated on the basis of a corresponding 6.70% total return and a 95% occupancy rate.
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 44
4544
Revaluation contingency of fixed assets (land areas)The plot of the city centre property (the Kaivopiha Commercial Building), which is owned by the parent corporation of theGroup and has a land area of 8,984 m2 and building rights (commercial and office premises) of 38,141 m2, meets the FinnishAccounting Act’s requirements for revaluation contingency. The usable taxable value of the plot was FIM 232,434,048 in 2000.The book value of the plot as at 31 December 2000 was FIM 4,229,570. Using the cost of the building rights of commercial andoffice plots in the district as the reference value, the value of the plot exceeds its taxable value. The revaluation contingencyindicated in the notes to the financial statements as at 31 December 2000 is FIM 200,000,000.
Seurity value of the securable assetsThe security value (market value – realization reserve) of the securable assets in the Group’s fixed assets is about FIM800,000,000. At least 30% of the market value of each asset item has been used as a realization reserve. Included in the secur-able assets are not only the Finnish real estate, housing shares and cooperative housing shares, but also the value of the sharelot in KILROY travels International A/S. The calculation also includes a lesser amount of marketable Finnish securities. Liabilitiesallocated to securable assets, i.e. mortgages and pledges, amounted to a total of FIM 94,908,931 on 31 December 2000.
Market value of securities
FIM Book value Market value DifferenceQuoted shares 101 188 1 753 877 1 652 689
FIM 2000 1999
Current assets
Receivables
Current receivablesReceivables from Group undertakings
Loan receivables 77 295 77 295Receivables from the owner
Account receivables 233 499 86 410Prepaid expenses and accrued income 39 150 11 250
272 649 97 660
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Investments
Shares in Group undertakings
Acquisition cost, 1 Jan. 332 380 3 403 603Decreases 0 -1 746 746Transfers to other shares 0 -1 324 476
Acquisition cost, 31 Dec. 332 380 332 380Book value, 31 Dec. 332 380 332 380
Receivables from Group undertakings
Acquisition cost, 1 Jan. 4 252 836 4 330 131Decreases -77 295 -77 295
Book value, 31 Dec. 4 175 541 4 252 836
Other shares and participations
Acquisition cost, 1 Jan. 4 528 346 5 915 571Increases 0 846 906Decreases -393 415 -3 559 001Transfers from shares in Group undertakings 0 1 324 476Exchange rate differences -981 395
Acquisition cost, 31 Dec. 4 133 950 4 528 346Book value, 31 Dec. 4 133 950 4 528 346
Market values of fixed assets*) insofar as they significantly deviate from the book values
City Centre Property 810 951 803 767 090 030Mannerheimintie 5, Kaivokatu 10, Aleksanterinkatu 23Land area: 8,984 m2
Building rights: 38,141 m2
Commercial and office premisesLeasable area: 31,693 m2, Parking places: 70 kpl
Leppäsuo Property 132 124 781 130 130 978Leppäsuonkatu 9, Hietaniemenkatu 14Land area: 6,882 m2
Building rights: 18,570 m2
Residential, library and commercial premisesLeasable area: 15,544 m2, Parking places: 65 kplMarket value, total 943 076 584 897 221 008
Equivalent book value, total 130 214 037 132 718 466
Difference between market values and book values 812 862 547 764 502 542
The combined market value of other real estate as well as real estate and premises based on share ownership equals at leasttheir combined book value, which is FIM 5,929,082.
*) In accordance with the formula of the Finnish Institute for Real Estate Economics, the market value has been calculated asbeing the present value of future net rental income returns. The market values as at 31 Dec. 2000 have been calculated on thebasis of a 7.50% total return requirement and a 95% occupancy rate. The total return requirement is based on the 2000 intereston the government’s 10-year bonds, 5.50, with an added risk premium of 2.00%. The previous year's market values have beencalculated on the basis of a corresponding 6.70% total return and a 95% occupancy rate.
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
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4746
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Liabilities
Interest-bearing and non-interest-bearing liabilities
Interest-bearingNon-current 111 549 862 119 191 052Current 11 759 004 11 761 003
123 308 866 130 952 055Non-interest-bearing
Non-current 11 031 534 11 067 943Current 334 264 550 308 104 509
345 296 084 319 172 452
Liabilities, total 468 604 950 450 124 507
Non-current liabilities
Loans from financial institutions 74 591 675 76 001 828Pension loans 18 907 550 20 803 817Other non-current debts 40 841 175 45 094 487
134 340 400 141 900 132Repayment of loans -11 759 004 -11 641 137Total 122 581 396 130 258 995
Repayment plan for non-current liabilities
Year 2001 2002 2003–2005 2006�
Loans from financial institutions 6 227 694 5 227 694 32 366 682 27 002 528Pension loans 1 833 528 1 775 181 5 014 896 10 283 944Other loans 3 697 781 303 362 5 934 299 12 419 641Total 11 759 004 7 306 238 43 315 877 49 706 113
Liabilities to the ownersOther liabilities 16 910 000 12 710 000
Current liabilities
Current liabilities to the ownersAccounts payable 33 830 88 731Accrued liabilities and prepaid income 8 361 71 432
42 191 160 163
Significant items in accrued liabilities and prepaid income
Difference between advance and final rents 1 790 957
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Shares and participationsParent
Group’s corporation’sholding, % holding, %
Group companiesHYY Group Ltd 100.0 100.0
Oy Vanha Ylioppilastalo Ab 100.0Oy UniCafe Ab 100.0Oy UniCard Ab 90.0University Press Finland Ltd 100.0Kaivopiha Ltd 100.0Oy Academica Hotels Ltd 100.0KILROY travels International A/S 56.9
KILROY travels Denmark A/S 56.9Benns Rejser A/S 56.9
Benns Resor AB 56.9Benns Reiser AS 56.9
KILROY travels Finland OY AB 56.9KILROY travels Germany GmbH 56.9KILROY travels Norway A/S 56.9
KILROY travels Trondheim A/S 56.9KILROY travels Sweden AB 56.9KILROY travels Spain S.A. 56.9KILROY Invest A/S 56.9KILROY travels Netherlands B.V. 56.9
Associated companiesKiinteistö Oy Kehitystalo 25.0
FIM 2000 1999
Shareholders’ equity
Share capital, 31 Dec. 17 250 000 17 250 000
Retained earnings, 1 Jan. 54 974 252 47 469 864Dividends paid to minority shareholders -1 802 400 -2 208 057Other changes 17 042 15 200Exchange rate differences -428 712 825 851Dividends paid -13 500 000 -13 000 000
Retained earnings, 31 Dec. 39 260 182 33 102 859
Net profit for the period 24 311 020 21 871 393
Non-restricted equity, total 63 571 202 54 974 252
Share of the accumulated depreciation difference recorded in shareholders’ equity 5 067 984 4 620 825
Distributable funds from shareholders’ equity 58 503 219 50 353 427
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N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Liabilities
Interest-bearing and non-interest-bearing liabilities
Interest-bearingNon-current 111 549 862 119 191 052Current 11 759 004 11 761 003
123 308 866 130 952 055Non-interest-bearing
Non-current 11 031 534 11 067 943Current 334 264 550 308 104 509
345 296 084 319 172 452
Liabilities, total 468 604 950 450 124 507
Non-current liabilities
Loans from financial institutions 74 591 675 76 001 828Pension loans 18 907 550 20 803 817Other non-current debts 40 841 175 45 094 487
134 340 400 141 900 132Repayment of loans -11 759 004 -11 641 137Total 122 581 396 130 258 995
Repayment plan for non-current liabilities
Year 2001 2002 2003–2005 2006�
Loans from financial institutions 6 227 694 5 227 694 32 366 682 27 002 528Pension loans 1 833 528 1 775 181 5 014 896 10 283 944Other loans 3 697 781 303 362 5 934 299 12 419 641Total 11 759 004 7 306 238 43 315 877 49 706 113
Liabilities to the ownersOther liabilities 16 910 000 12 710 000
Current liabilities
Current liabilities to the ownersAccounts payable 33 830 88 731Accrued liabilities and prepaid income 8 361 71 432
42 191 160 163
Significant items in accrued liabilities and prepaid income
Difference between advance and final rents 1 790 957
FIM 2000 1999
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
N OT E S TO T H E B A L A N C E S H E E T
Shares and participationsParent
Group’s corporation’sholding, % holding, %
Group companiesHYY Group Ltd 100.0 100.0
Oy Vanha Ylioppilastalo Ab 100.0Oy UniCafe Ab 100.0Oy UniCard Ab 90.0University Press Finland Ltd 100.0Kaivopiha Ltd 100.0Oy Academica Hotels Ltd 100.0KILROY travels International A/S 56.9
KILROY travels Denmark A/S 56.9Benns Rejser A/S 56.9
Benns Resor AB 56.9Benns Reiser AS 56.9
KILROY travels Finland OY AB 56.9KILROY travels Germany GmbH 56.9KILROY travels Norway A/S 56.9
KILROY travels Trondheim A/S 56.9KILROY travels Sweden AB 56.9KILROY travels Spain S.A. 56.9KILROY Invest A/S 56.9KILROY travels Netherlands B.V. 56.9
Associated companiesKiinteistö Oy Kehitystalo 25.0
FIM 2000 1999
Shareholders’ equity
Share capital, 31 Dec. 17 250 000 17 250 000
Retained earnings, 1 Jan. 54 974 252 47 469 864Dividends paid to minority shareholders -1 802 400 -2 208 057Other changes 17 042 15 200Exchange rate differences -428 712 825 851Dividends paid -13 500 000 -13 000 000
Retained earnings, 31 Dec. 39 260 182 33 102 859
Net profit for the period 24 311 020 21 871 393
Non-restricted equity, total 63 571 202 54 974 252
Share of the accumulated depreciation difference recorded in shareholders’ equity 5 067 984 4 620 825
Distributable funds from shareholders’ equity 58 503 219 50 353 427
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4948
Collateral granted, contingent liabilities and other commitments
Liabilities for which real estate mortgages have been granted as collateral
Pension loans 18 907 550 20 803 817Mortgages granted 18 990 000 22 390 000
Loans from financial institutions 54 293 488 50 401 680Mortgages granted 56 060 000 54 280 000
Other debts 11 707 893 20 236 528Mortgages granted 34 987 950 40 578 950
Mortgages granted as collateral, total 110 028 950 117 248 950
Liabilities for which shares have been pledged as collateral
Loans from financial institutions 597 510 719 198Book value of pledged shares 629 377 787 921
Collateral given on behalf of Group companies
Commitments 10 000 000 10 000 000Mortgaged promissory notes 10 000 000 10 000 000
Leasing commitments
Unpaid amounts of leasing agreements
Payable during the current financial year 104 026 80 705Payable later 369 892 133 440Total 473 918 214 145
Guarantees on behalf of Group companies
HYY Group Ltd’s endorsed guarantees for the credit of a Group company 508 000 588 000
Parent corporation’s endorsed guarantees for the credits of HYY Group Ltd 10 000 000 10 000 000
Guarantees on behalf of others
Parent corporation’s endorsed guarantees For the liabilities of an associated company 0 11 250
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
OT H E R N OT E S
FIM 2000 1999 management of financial risks
Principles underlying the manage-ment of financial risks
The HYY Group’s management of finan-cial risks in Finland is based on a deci-sion which was taken by the Group’sBoard of Directors and will be in effectuntil further notice. The management of the financial risks of the KILROYtravels subgroup is based on the deci-sions taken by the Board of Directors of the subgroup’s parent company.Finnish financial risks are managed inHelsinki and those of the KILROYtravels subgroup in Copenhagen.Financial functions are primarily gearedtowards attending to the funding of the Group and the divisions in a cost-effective manner with the aim of identi-fying and gauging risks pertaining tofinancing as well as hedging againstthem in cooperation with the Group’svarious divisions.
Market risks
Foreign exchange riskThe most important means of hedgingagainst translation risks pertaining tothe foreign currency-denominated itemsin the balance sheet is the harmoniza-tion of the currency basis of balancesheet items by means of foreign currencyloans.
The international scope of theDanish KILROY travels subgroupexposes it to foreign exchange risksbetween numerous different currencies.Receivables and liabilities denominatedin a foreign currency constitute thesubgroup’s foreign exchange exposure.
The subgroup has made agreementswith air carriers based in many countries,and for this reason the foreign exchangerisk is managed with respect to numer-ous local currencies. Sales are made inthe local currency of each country. Inaddition to the balance sheet items, theforeign exchange exposure involves pre-dictable, agreement-based receivablesthat are denominated in a foreign cur-rency. The primary currencies are theUSD, GBP and the euro. In accordancewith the hedging policy, significantexposures are hedged.
In its Finnish operations, the Grouphas not drawn down long-term loans in foreign currencies. Moreover, Finnishreceivables and current liabilities donot involve foreign exchange exposurethat is material in amount. The onlysignificant investment denominated in a foreign currency has been made in a currency whose fluctuations closelyfollow the rate of the euro.
As the HYY Group has foreign sub-sidiaries outside the euro zone, theGroup’s shareholders’ equity is exposedto exchange rate fluctuations. Changesin shareholders’ equity due to exchangerate changes are shown as translationdifferences in the consolidated financialstatements.
Interest rate riskThe HYY Group is exposed to interestrate risks primarily through the interest-bearing net debt in the balance sheet.The main objective of the managementof interest rate risks is to restrict theinterest rate maturities of liabilitiessuch that they correspond as closely aspossible to the interest rate maturity ofthe asset items in the balance sheet.
Credit risks
Commercial credit riskThe bulk of the operations of theGroup’s business divisions, with theexception of the Real Estate Division, is based on cash sales. The objective of the management of credit loss risksis to minimize the probability that risks will materialize. In practice, thisentails making agreements only withcontractual partners that fulfil theGroup’s credit criteria.
Financial credit riskThe primary consideration in investmentactivities is to recoup the invested capi-tal, with returns as a secondary consid-eration. Interest-earning investmentsare made only with well-knowndomestic and international banks thathave a good reputation. Investments infunds and other such investments aremade only in well-known domestic andinternational funds that have a goodreputation.
Liquidity riskThe Group maintains sufficient liquid-ity by means of effective cash manage-ment. When investing surplus liquidassets, the investment portfolio is to bea liquid financial market portfolio thatis subject to small risk.
Financial arrangements are seen toin a centralized and long-term manner.The Group’s good solvency and thehigh market value of its fixed assetsenable it to exploit the money marketseffectively.
N OT E S TO T H E F I NA N C I A L STAT E M E N T S
OT H E R N OT E S
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4948
Collateral granted, contingent liabilities and other commitments
Liabilities for which real estate mortgages have been granted as collateral
Pension loans 18 907 550 20 803 817Mortgages granted 18 990 000 22 390 000
Loans from financial institutions 54 293 488 50 401 680Mortgages granted 56 060 000 54 280 000
Other debts 11 707 893 20 236 528Mortgages granted 34 987 950 40 578 950
Mortgages granted as collateral, total 110 028 950 117 248 950
Liabilities for which shares have been pledged as collateral
Loans from financial institutions 597 510 719 198Book value of pledged shares 629 377 787 921
Collateral given on behalf of Group companies
Commitments 10 000 000 10 000 000Mortgaged promissory notes 10 000 000 10 000 000
Leasing commitments
Unpaid amounts of leasing agreements
Payable during the current financial year 104 026 80 705Payable later 369 892 133 440Total 473 918 214 145
Guarantees on behalf of Group companies
HYY Group Ltd’s endorsed guarantees for the credit of a Group company 508 000 588 000
Parent corporation’s endorsed guarantees for the credits of HYY Group Ltd 10 000 000 10 000 000
Guarantees on behalf of others
Parent corporation’s endorsed guarantees For the liabilities of an associated company 0 11 250
N OT E S TO T H E C O N S O L I DAT E D F I NA N C I A L STAT E M E N T S
OT H E R N OT E S
FIM 2000 1999 management of financial risks
Principles underlying the manage-ment of financial risks
The HYY Group’s management of finan-cial risks in Finland is based on a deci-sion which was taken by the Group’sBoard of Directors and will be in effectuntil further notice. The management of the financial risks of the KILROYtravels subgroup is based on the deci-sions taken by the Board of Directors of the subgroup’s parent company.Finnish financial risks are managed inHelsinki and those of the KILROYtravels subgroup in Copenhagen.Financial functions are primarily gearedtowards attending to the funding of the Group and the divisions in a cost-effective manner with the aim of identi-fying and gauging risks pertaining tofinancing as well as hedging againstthem in cooperation with the Group’svarious divisions.
Market risks
Foreign exchange riskThe most important means of hedgingagainst translation risks pertaining tothe foreign currency-denominated itemsin the balance sheet is the harmoniza-tion of the currency basis of balancesheet items by means of foreign currencyloans.
The international scope of theDanish KILROY travels subgroupexposes it to foreign exchange risksbetween numerous different currencies.Receivables and liabilities denominatedin a foreign currency constitute thesubgroup’s foreign exchange exposure.
The subgroup has made agreementswith air carriers based in many countries,and for this reason the foreign exchangerisk is managed with respect to numer-ous local currencies. Sales are made inthe local currency of each country. Inaddition to the balance sheet items, theforeign exchange exposure involves pre-dictable, agreement-based receivablesthat are denominated in a foreign cur-rency. The primary currencies are theUSD, GBP and the euro. In accordancewith the hedging policy, significantexposures are hedged.
In its Finnish operations, the Grouphas not drawn down long-term loans in foreign currencies. Moreover, Finnishreceivables and current liabilities donot involve foreign exchange exposurethat is material in amount. The onlysignificant investment denominated in a foreign currency has been made in a currency whose fluctuations closelyfollow the rate of the euro.
As the HYY Group has foreign sub-sidiaries outside the euro zone, theGroup’s shareholders’ equity is exposedto exchange rate fluctuations. Changesin shareholders’ equity due to exchangerate changes are shown as translationdifferences in the consolidated financialstatements.
Interest rate riskThe HYY Group is exposed to interestrate risks primarily through the interest-bearing net debt in the balance sheet.The main objective of the managementof interest rate risks is to restrict theinterest rate maturities of liabilitiessuch that they correspond as closely aspossible to the interest rate maturity ofthe asset items in the balance sheet.
Credit risks
Commercial credit riskThe bulk of the operations of theGroup’s business divisions, with theexception of the Real Estate Division, is based on cash sales. The objective of the management of credit loss risksis to minimize the probability that risks will materialize. In practice, thisentails making agreements only withcontractual partners that fulfil theGroup’s credit criteria.
Financial credit riskThe primary consideration in investmentactivities is to recoup the invested capi-tal, with returns as a secondary consid-eration. Interest-earning investmentsare made only with well-knowndomestic and international banks thathave a good reputation. Investments infunds and other such investments aremade only in well-known domestic andinternational funds that have a goodreputation.
Liquidity riskThe Group maintains sufficient liquid-ity by means of effective cash manage-ment. When investing surplus liquidassets, the investment portfolio is to bea liquid financial market portfolio thatis subject to small risk.
Financial arrangements are seen toin a centralized and long-term manner.The Group’s good solvency and thehigh market value of its fixed assetsenable it to exploit the money marketseffectively.
N OT E S TO T H E F I NA N C I A L STAT E M E N T S
OT H E R N OT E S
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5150
S I G NAT U R E S
STAT E M E N T B Y T H E SU P E RV I S O RY B OA R D O F T H E H Y Y G R O U P LT D
To the Representative Councilof the Student Union of theUniversity of Helsinki We have audited the accountingrecords and the financial statements,as well as the administration by theBoard of Directors and the Presidentand CEO of the Real Estate Funds of HYY (the parent corporation) andthe HYY Group, which is formed bythe Real Estate Funds, HYY GroupLtd and its corporate group, for thefinancial year from 1 January to 31December 2000. The financial state-ments, which include the report ofthe Board of Directors, consolidatedand parent corporation income state-ments, balance sheets and notes tothe financial statements, have beenprepared by the Board of Directorsand the President and CEO. Basedon our audit, we express an opinionon these financial statements and thecompany’s administration.
We have conducted our audit inaccordance with Finnish Generally
AU D I TO R S ’ R E P O RT
Accepted Audited Standards. Thosestandards require that we plan andperform the audit in order to obtainreasonable assurance about whetherthe financial statements are free ofmaterial misstatement. An auditincludes examining, on a test basis,evidence supporting the amountsand disclosures in the financial state-ments, assessing the accounting prin-ciples used and significant estimatesmade by the management, as well asevaluating the overall financial state-ment preparation. The purpose ofour audit of the administration hasbeen to examine that the membersof the Board of Directors and thePresident and CEO have compliedwith the rules of the Student Unionand the Finnish Companies Act.
In our opinion, the financialstatements have been prepared inaccordance with the Finnish Account-ing Act and other rules and regula-tions governing the preparation offinancial statements in Finland. The
financial statements give a true andfair view, as defined in the Account-ing Act, of both the consolidated andparent corporation result of opera-tions, as well as of the financial posi-tion. The financial statements, includ-ing the consolidated financial state-ments, can be adopted and the mem-bers of the Board of Directors andthe President and CEO of the parentcorporation can be discharged fromliability for the period audited by us.We support the proposal made bythe Board of Directors on how todeal with the earnings for the finan-cial year.
Helsinki, 30 March 2001KPMG WIDERI OY AB
Reino TikkanenAuthorized Public Accountant
AU D I TO R S , 2 0 0 0
KPMG Wideri Oy AbThe HYY Group and its Finnish companies
KPMG C. Jespersen,KPMG Wideri Oy Ab
Travel subgroup KILROY travels KILROY travels International A/S
T H E H Y Y G R O U P ’ S AC C O U N T I N G C O M M I T T E E , 2 0 0 0
with the Board of Directors’ proposal onthe distribution of profits.
Helsinki, 4 April 2001
On behalf of the Supervisory Board,
Petteri HuovinenChair of the Supervisory Board
The Supervisory Board has examinedthe 2000 financial statements andconsolidated financial statements ofthe HYY Group and HYY Group Ltdas well as the auditors’ reports andconsolidated auditors’ reports, andhas not found any such defects inthem as would give cause for com-ments. The Supervisory Board is thus in favour of the adoption of thefinancial statements, and is in accord
The regular auditors of the HYYGroup’s owner, the Student Union of the University of Helsinki, will,once they have given their consent,form the Group’s Auditing Committee.The chair will be the responsibleAuthorized Public Accountantappointed by the Group’s AuthorizedPublic Accountants. The Committeeshall report to the Board of Directorsof the HYY Group.
Reino Tikkanen,Authorized Public Accountant, Chair
Erkki HelaniemiRauno VälimaaHanna LeskinenTero Metsärinta
Signatures of the Board of Directors and the President and CEO of the HYY Group and HYY Group Ltd
Helsinki, 23 March 2001
Jukka Nohteri Hannes SaarinenChair
Sari Havukainen Hanna Järvinen
Jukka Pajarinen Jaakko Hietala
Mika Ihamuotila Kerstin Rinne
Harri Tanhuanpää Tapio KiiskinenPresident and CEO
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5150
S I G NAT U R E S
STAT E M E N T B Y T H E SU P E RV I S O RY B OA R D O F T H E H Y Y G R O U P LT D
To the Representative Councilof the Student Union of theUniversity of Helsinki We have audited the accountingrecords and the financial statements,as well as the administration by theBoard of Directors and the Presidentand CEO of the Real Estate Funds of HYY (the parent corporation) andthe HYY Group, which is formed bythe Real Estate Funds, HYY GroupLtd and its corporate group, for thefinancial year from 1 January to 31December 2000. The financial state-ments, which include the report ofthe Board of Directors, consolidatedand parent corporation income state-ments, balance sheets and notes tothe financial statements, have beenprepared by the Board of Directorsand the President and CEO. Basedon our audit, we express an opinionon these financial statements and thecompany’s administration.
We have conducted our audit inaccordance with Finnish Generally
AU D I TO R S ’ R E P O RT
Accepted Audited Standards. Thosestandards require that we plan andperform the audit in order to obtainreasonable assurance about whetherthe financial statements are free ofmaterial misstatement. An auditincludes examining, on a test basis,evidence supporting the amountsand disclosures in the financial state-ments, assessing the accounting prin-ciples used and significant estimatesmade by the management, as well asevaluating the overall financial state-ment preparation. The purpose ofour audit of the administration hasbeen to examine that the membersof the Board of Directors and thePresident and CEO have compliedwith the rules of the Student Unionand the Finnish Companies Act.
In our opinion, the financialstatements have been prepared inaccordance with the Finnish Account-ing Act and other rules and regula-tions governing the preparation offinancial statements in Finland. The
financial statements give a true andfair view, as defined in the Account-ing Act, of both the consolidated andparent corporation result of opera-tions, as well as of the financial posi-tion. The financial statements, includ-ing the consolidated financial state-ments, can be adopted and the mem-bers of the Board of Directors andthe President and CEO of the parentcorporation can be discharged fromliability for the period audited by us.We support the proposal made bythe Board of Directors on how todeal with the earnings for the finan-cial year.
Helsinki, 30 March 2001KPMG WIDERI OY AB
Reino TikkanenAuthorized Public Accountant
AU D I TO R S , 2 0 0 0
KPMG Wideri Oy AbThe HYY Group and its Finnish companies
KPMG C. Jespersen,KPMG Wideri Oy Ab
Travel subgroup KILROY travels KILROY travels International A/S
T H E H Y Y G R O U P ’ S AC C O U N T I N G C O M M I T T E E , 2 0 0 0
with the Board of Directors’ proposal onthe distribution of profits.
Helsinki, 4 April 2001
On behalf of the Supervisory Board,
Petteri HuovinenChair of the Supervisory Board
The Supervisory Board has examinedthe 2000 financial statements andconsolidated financial statements ofthe HYY Group and HYY Group Ltdas well as the auditors’ reports andconsolidated auditors’ reports, andhas not found any such defects inthem as would give cause for com-ments. The Supervisory Board is thus in favour of the adoption of thefinancial statements, and is in accord
The regular auditors of the HYYGroup’s owner, the Student Union of the University of Helsinki, will,once they have given their consent,form the Group’s Auditing Committee.The chair will be the responsibleAuthorized Public Accountantappointed by the Group’s AuthorizedPublic Accountants. The Committeeshall report to the Board of Directorsof the HYY Group.
Reino Tikkanen,Authorized Public Accountant, Chair
Erkki HelaniemiRauno VälimaaHanna LeskinenTero Metsärinta
Signatures of the Board of Directors and the President and CEO of the HYY Group and HYY Group Ltd
Helsinki, 23 March 2001
Jukka Nohteri Hannes SaarinenChair
Sari Havukainen Hanna Järvinen
Jukka Pajarinen Jaakko Hietala
Mika Ihamuotila Kerstin Rinne
Harri Tanhuanpää Tapio KiiskinenPresident and CEO
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 50
52 53
Ten years of environmental workThe HYY Group has engaged inpractical and goal-directed environ-mental efforts for a decade. Now, theGroup will overhaul its environmen-tal programme; concurrently, themost important aspects affecting the
Group’s environmental compliancewill be reassessed and defined. The content of the Group’s currentenvironmental programme was formu-lated at the beginning of the 1990s.The business environment haschanged substantially since then. The environmental standard, too, has been modified. The new environ-mental programme will comply withthe standard defined for the servicesector. An auditing report preparedby KPMG Environmental Services willbe used to facilitate environmentalefforts.
The Group’s goal is to be in thevanguard of companies attending toenvironmental compliance in an exem-plary manner in the service sector.This is the reason why the environ-mental programme is being modern-ized and updated, even though manyenvironmental compliance measureshave already been instituted as day-to-day functions and routines withinthe Group. For example, environ-
mentally-friendly waste managementis a matter of routine within HYY’sreal estate. By acting to prevent wastefrom being generated, we will betaking another step forward.
Lifecycle thinking is part of theHYY Group’s operations, even thoughthe Group does not operate an indus-trial plant. In practice, lifecycle think-ing entails only purchasing productsthat are of a good quality and can berepaired or recycled, for example, orproducts that can be fully consumedwithout generating waste.
The EU’s directives and otherinternational agreements have a bear-ing on the environmental programme.
Training and rewardsThe Group has an eco-network, thatis, an environmental group whichorganizes training and ensures thatthe programme is kept up to date. In addition, a person responsible forecological matters who knows theaims of the programme has beenappointed for each business location.
The Group has elicited the com-mitment of its personnel to the envi-ronmental programme by disseminat-ing information, training and reward-ing them. Environmentally soundways of working are taught duringthe orientation phase and in the“welcome to the HYY Group” guide-books. Information on good environ-mental deeds within the Group iscollected annually and those whodid them are rewarded.
Favouring organic, localand “fair trade” productsThe HYY Group’s owner-customersare interested in eating healthy food.For this reason, the Group wishes toensure that the ingredients used bythe UniCafe restaurants are safe and
diverse. When the previous environ-mental programme was drafted,products with genetically modifiedorganisms (GMO) were not an issue;now that the programme is beingreformulated, the Group will take astand on such products. It is possiblethat GMO products will not be usedat all. In addition to favouring organicproducts, local produce will also beimportant. The Group already stocks“fair trade” products (which arebought from small-scale producers).
Taking a stand on social responsibilitiesIn the overhauled environmental pro-gramme, the company will adopt aposition on many issues pertaining to its social responsibilities.
During spring 2001, the Boardsof Directors of the Finnish sub-sidiaries will deliberate on the signif-icant focus areas of each company’sfield of business. About one hundredpeople representing different fields ofbusiness will take part in these dis-cussions.
Each business area’s views andchosen focus areas will be collectedfor airing during the discussions onthe Group’s environmental strategy –which is linked to the owner andbusiness strategies – that will be conducted by the HYY Group’s Boardof Directors and Supervisory Board.The HYY Group’s Board of Directorswill make a decision on the reworkedenvironmental programme in autumn2001. The HYY Group’s SupervisoryBoard will be heard on the issuebefore the decision is made.
T H E H Y Y G R O U P OV E R H AU L S I T S E N V I R O N M E N TA L P R O G R A M M E
Ritva Kuuluvainen, Manager of Group Financingand Coordinator of Environmental Affairs
T H E G R O U P ’ S OW N E R
The Student Union of the University ofHelsinki (HYY) was founded in 1868. Today,the Union has about 30,000 members. All those who are studying for a Bachelor’s or Master’s degree at the University ofHelsinki are automatically members of theStudent Union. Post-graduate studentsmay also enrol as members of the StudentUnion. The Student Union can, in accor-dance with its regulations, also acceptother university students as its members.The Student Union acts as a service andinterest organization for its members.
The Student Union funds its operationswith membership fees and revenues fromthe capital in the contingency fund; thecapital in the fund comes from the profitsdistributed by the HYY Group. During thepast few years, membership fees fundedabout one-third of operations, while theremaining two-thirds were funded withrevenues from the contingency fund.
P OW E R O F D E C I S I O N AT T H E ST U D E N T U N I O NA N D T H E H Y Y G R O U P
REPRESENTATIVE COUNCIL
The Student Union’s highest power ofdecision is exercised by the RepresentativeCouncil, whose 60 members are electedby the members of the Student Union in a proportional and general electionwhich is held every second year. TheRepresentative Council approves the HYYGroup’s owner strategy documents andthus sets the objectives and central targetsof business operations. In addition, theRepresentative Council decides on theannual investment and risk framework of the Group’s parent corporation, that is,the Real Estate Funds of HYY, basing itsdecision on the report submitted by theSupervisory Board. The RepresentativeCouncil ratifies the parent corporation’sannual target budget as well as decides on adopting the financial statements ofthe parent corporation and the grantingof release from liability. The RepresentativeCouncil both elects and releases the StudentUnion’s financial director and the auditorsof the HYY Group’s parent corporation,who also act as the auditors of HYY GroupLtd and its corporate group.
Chair of the Student Union Veera Mustonen
Deputy ChairsMikko MyllerUlla Kuisma
MembersThe Student Union has 60 memberswho are chosen by general electionfor a two-year term.
BOARD OF THE STUDENT UNION
The Representative Council elects theBoard of the Student Union for a term ofone calendar year. The Board approves theproposals concerning the owner strategydocuments of the HYY Group, the parentcorporation’s annual investment and riskframeworks and the target budget for realestate which will be submitted to theRepresentative Council. The Board of theStudent Union holds the Annual GeneralMeeting of HYY Group Ltd and elects theHYY Group’s Supervisory Board, Board ofDirectors and the Real Estate ManagementBoard.
ChairElina Moisio
Deputy ChairMikko Myllys
MembersMikko AlakareTeemu AlarantaJohanna HaapalaAleksi HenttonenPäivi LahtiTommi LaitioJukka NohteriStiven PerttunenAija SaloElina SojonenVille Ylikahri
SUPERVISORY BOARD OF THE HYY GROUP
The Supervisory Board is elected by theBoard of the Student Union and it comprises12-18 members. The Supervisory Board’sterm of office is the period between AnnualGeneral Meetings, or about a year.
The Supervisory Board acts as theSupervisory Board of the HYY Group andHYY Group Ltd. The Board of Directors ofthe HYY Group submits to the review of the Supervisory Board such matters as aresignificant to the entire corporate entity or concern its principles. The SupervisoryBoard gives reports or opinions on variousfinal acts to the Representative Council andthe Board of the Student Union. TheSupervisory Board elects and releases HYYGroup Ltd’s President and CEO.
ChairPetteri Huovinen
Deputy ChairNora Malin
MembersSebastian GripenbergIsto HavuJussi HuovilaPerttu Iso-MarkkuPanu LaturiAntti LauriJukka LepolaSalla PyykkönenLaura RissanenMinna RomppanenKaisu SalumäkiNiko SimolaMikko StrahlendorffJohanna SumuvuoriAnu SäiläTaneli Vuori
A D M I N I ST R AT I O N A N D M A NAG E M E N T 2 3 M A R C H 2 0 0 1
Members of the Student Union (30,000)
Representative Council of the Student Union (60)
Board of the Student Union (7 - 13)
Annual General Meeting
Supervisory Board of the HYY Group (12 - 18)
Board of Directors of the HYY Group (6 - 9)
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 52
52 53
Ten years of environmental workThe HYY Group has engaged inpractical and goal-directed environ-mental efforts for a decade. Now, theGroup will overhaul its environmen-tal programme; concurrently, themost important aspects affecting the
Group’s environmental compliancewill be reassessed and defined. The content of the Group’s currentenvironmental programme was formu-lated at the beginning of the 1990s.The business environment haschanged substantially since then. The environmental standard, too, has been modified. The new environ-mental programme will comply withthe standard defined for the servicesector. An auditing report preparedby KPMG Environmental Services willbe used to facilitate environmentalefforts.
The Group’s goal is to be in thevanguard of companies attending toenvironmental compliance in an exem-plary manner in the service sector.This is the reason why the environ-mental programme is being modern-ized and updated, even though manyenvironmental compliance measureshave already been instituted as day-to-day functions and routines withinthe Group. For example, environ-
mentally-friendly waste managementis a matter of routine within HYY’sreal estate. By acting to prevent wastefrom being generated, we will betaking another step forward.
Lifecycle thinking is part of theHYY Group’s operations, even thoughthe Group does not operate an indus-trial plant. In practice, lifecycle think-ing entails only purchasing productsthat are of a good quality and can berepaired or recycled, for example, orproducts that can be fully consumedwithout generating waste.
The EU’s directives and otherinternational agreements have a bear-ing on the environmental programme.
Training and rewardsThe Group has an eco-network, thatis, an environmental group whichorganizes training and ensures thatthe programme is kept up to date. In addition, a person responsible forecological matters who knows theaims of the programme has beenappointed for each business location.
The Group has elicited the com-mitment of its personnel to the envi-ronmental programme by disseminat-ing information, training and reward-ing them. Environmentally soundways of working are taught duringthe orientation phase and in the“welcome to the HYY Group” guide-books. Information on good environ-mental deeds within the Group iscollected annually and those whodid them are rewarded.
Favouring organic, localand “fair trade” productsThe HYY Group’s owner-customersare interested in eating healthy food.For this reason, the Group wishes toensure that the ingredients used bythe UniCafe restaurants are safe and
diverse. When the previous environ-mental programme was drafted,products with genetically modifiedorganisms (GMO) were not an issue;now that the programme is beingreformulated, the Group will take astand on such products. It is possiblethat GMO products will not be usedat all. In addition to favouring organicproducts, local produce will also beimportant. The Group already stocks“fair trade” products (which arebought from small-scale producers).
Taking a stand on social responsibilitiesIn the overhauled environmental pro-gramme, the company will adopt aposition on many issues pertaining to its social responsibilities.
During spring 2001, the Boardsof Directors of the Finnish sub-sidiaries will deliberate on the signif-icant focus areas of each company’sfield of business. About one hundredpeople representing different fields ofbusiness will take part in these dis-cussions.
Each business area’s views andchosen focus areas will be collectedfor airing during the discussions onthe Group’s environmental strategy –which is linked to the owner andbusiness strategies – that will be conducted by the HYY Group’s Boardof Directors and Supervisory Board.The HYY Group’s Board of Directorswill make a decision on the reworkedenvironmental programme in autumn2001. The HYY Group’s SupervisoryBoard will be heard on the issuebefore the decision is made.
T H E H Y Y G R O U P OV E R H AU L S I T S E N V I R O N M E N TA L P R O G R A M M E
Ritva Kuuluvainen, Manager of Group Financingand Coordinator of Environmental Affairs
T H E G R O U P ’ S OW N E R
The Student Union of the University ofHelsinki (HYY) was founded in 1868. Today,the Union has about 30,000 members. All those who are studying for a Bachelor’s or Master’s degree at the University ofHelsinki are automatically members of theStudent Union. Post-graduate studentsmay also enrol as members of the StudentUnion. The Student Union can, in accor-dance with its regulations, also acceptother university students as its members.The Student Union acts as a service andinterest organization for its members.
The Student Union funds its operationswith membership fees and revenues fromthe capital in the contingency fund; thecapital in the fund comes from the profitsdistributed by the HYY Group. During thepast few years, membership fees fundedabout one-third of operations, while theremaining two-thirds were funded withrevenues from the contingency fund.
P OW E R O F D E C I S I O N AT T H E ST U D E N T U N I O NA N D T H E H Y Y G R O U P
REPRESENTATIVE COUNCIL
The Student Union’s highest power ofdecision is exercised by the RepresentativeCouncil, whose 60 members are electedby the members of the Student Union in a proportional and general electionwhich is held every second year. TheRepresentative Council approves the HYYGroup’s owner strategy documents andthus sets the objectives and central targetsof business operations. In addition, theRepresentative Council decides on theannual investment and risk framework of the Group’s parent corporation, that is,the Real Estate Funds of HYY, basing itsdecision on the report submitted by theSupervisory Board. The RepresentativeCouncil ratifies the parent corporation’sannual target budget as well as decides on adopting the financial statements ofthe parent corporation and the grantingof release from liability. The RepresentativeCouncil both elects and releases the StudentUnion’s financial director and the auditorsof the HYY Group’s parent corporation,who also act as the auditors of HYY GroupLtd and its corporate group.
Chair of the Student Union Veera Mustonen
Deputy ChairsMikko MyllerUlla Kuisma
MembersThe Student Union has 60 memberswho are chosen by general electionfor a two-year term.
BOARD OF THE STUDENT UNION
The Representative Council elects theBoard of the Student Union for a term ofone calendar year. The Board approves theproposals concerning the owner strategydocuments of the HYY Group, the parentcorporation’s annual investment and riskframeworks and the target budget for realestate which will be submitted to theRepresentative Council. The Board of theStudent Union holds the Annual GeneralMeeting of HYY Group Ltd and elects theHYY Group’s Supervisory Board, Board ofDirectors and the Real Estate ManagementBoard.
ChairElina Moisio
Deputy ChairMikko Myllys
MembersMikko AlakareTeemu AlarantaJohanna HaapalaAleksi HenttonenPäivi LahtiTommi LaitioJukka NohteriStiven PerttunenAija SaloElina SojonenVille Ylikahri
SUPERVISORY BOARD OF THE HYY GROUP
The Supervisory Board is elected by theBoard of the Student Union and it comprises12-18 members. The Supervisory Board’sterm of office is the period between AnnualGeneral Meetings, or about a year.
The Supervisory Board acts as theSupervisory Board of the HYY Group andHYY Group Ltd. The Board of Directors ofthe HYY Group submits to the review of the Supervisory Board such matters as aresignificant to the entire corporate entity or concern its principles. The SupervisoryBoard gives reports or opinions on variousfinal acts to the Representative Council andthe Board of the Student Union. TheSupervisory Board elects and releases HYYGroup Ltd’s President and CEO.
ChairPetteri Huovinen
Deputy ChairNora Malin
MembersSebastian GripenbergIsto HavuJussi HuovilaPerttu Iso-MarkkuPanu LaturiAntti LauriJukka LepolaSalla PyykkönenLaura RissanenMinna RomppanenKaisu SalumäkiNiko SimolaMikko StrahlendorffJohanna SumuvuoriAnu SäiläTaneli Vuori
A D M I N I ST R AT I O N A N D M A NAG E M E N T 2 3 M A R C H 2 0 0 1
Members of the Student Union (30,000)
Representative Council of the Student Union (60)
Board of the Student Union (7 - 13)
Annual General Meeting
Supervisory Board of the HYY Group (12 - 18)
Board of Directors of the HYY Group (6 - 9)
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 52
54 555554
BOARD OF DIRECTORS OF THE HYY GROUP
The Board of Directors of the HYY Groupacts as the Board of Directors of the Group’sparent corporation – the Real Estate Fundsof HYY – and of HYY Group Ltd and itscorporate group. The Board of Directorshas 6 to 9 members. A personnel repre-sentative has the right to attend and beheard at meetings. About half of themembers of the Board are elected fromamongst the students who are membersof the Student Union and the rest fromamongst external experts. The Chair iselected from amongst the members of theBoard of the Student Union. The “studentmembers”, including the Chair, have themajority vote when they are unanimous.Expert members are elected for two-yearterms, while the other members areelected for terms of one year.
The main task of the Board of Directorsof the HYY Group is to direct the opera-tions of the Group in accordance with legislation, the rules of the Student Unionand the Articles of Association of HYYGroup Ltd. Matters which must be subor-dinated to processing and approval by theGroup’s Board of Directors include, but are not limited to, decisions to establish,acquire, merge, terminate or sell sub-sidiaries, competition strategies, operatingplans, target budgets, significant invest-ments, financial statement plans and pro-posals for the distribution of profit. TheGroup’s Board of Directors oversees theoperations of the Boards of Directors ofcompanies which are part of HYY GroupLtd’s corporate group. The Group’s Boardof Directors attends to supporting, super-vising and assessing management.
ChairJukka Nohteri, born 1975a member of the Board of Directorssince 1999
Deputy Chair Hannes Saarinen, born 1975a member of the Board of Directorssince 1999
BOARD OF DIRECTORS OF KILROY TRAVELS INTERNATIONAL A/S25.4.2001The tasks of the Board of Directors havebeen specified in the Danish CompaniesAct and the standing procedures requiredby the Act. In addition, the principles tobe applied in the structure, duties andwork of the Board of Directors have beenagreed upon in the shareholder agree-ment made between the principal owners.The Chair and Deputy Chair of the Boardof Directors comprise the Executive Board.
ChairTapio Kiiskinen, born 1947President and CEO,HYY Group
Deputy ChairChristian Frigast, born 1951Managing Director and CEO, Axcel IndustriInvestor a.s.
MembersJohn Dueholm, born 1951Group Chief Operating Officer,Group 4 Falck A/S
Børge Faaborg, born 1939Former Managing Director and CEO,KILROY travels International A/S
Kaj Storbacka, born 1957Founder and Chairman of the Boardof Directors of CRM Group Ltd.
Claus Warming, born 1945Chairman of the Board of Directors ofSportgoods Holding A/S
Odd Wilhelmsen, born 1946Financial Manager,Studentsamskipnaden i Oslo
Personnel RepresentativeRobert Doeleman, born 1950
Board of Directors of the HYY GroupTop row, from left: Kerstin Rinne, MikaIhamuotila, Harri Tanhuanpää, Jaakko HietalaMiddle row, from left: Kaisa Siitonen, HannesSaarinen, Jukka Pajarinen, Sari HavukainenBottom row, from left: Jukka Nohteri, Hanna Järvinen
THE HYY GROUP’S PRESIDENT AND CEO AND EXECUTIVEMANAGEMENT
The HYY Group’s current President and CEOacts as the financial director of the StudentUnion (with his responsibilities includingthe Real Estate Funds of HYY) and also actsas the President and CEO of HYY GroupLtd and its corporate group.
The members of the executive man-agement of the Group’s Finnish part includethe Group’s President and CEO as Chair,the Group’s Vice President, the Directorsof the business divisions and AssistantDirectors responsible for units of their own.The Group’s subgroup, KILROY travelsInternational A/S, has its own executivemanagement.
HYY GROUP’S EXECUTIVEMANAGEMENT
Tapio Kiiskinen, born 1947President and Chief Executive OfficerChair of the Boards of Directors: KILROY travels International A/S, Oy UniCard Ab, University PressFinland Ltd, Oy Academica Hotels LtdFinancial Director of the Student UnionEmployed by the Student Union andthe HYY Group since 1969
Linnea Meder, born 1947Vice PresidentHYY Group LtdCorporate Finance and Internal Auditing Managing Director: Oy UniCard Ab,University Press Finland LtdEmployed by the Student Union andthe HYY Group since 1973
HYY GROUP LTD
Liisa Lehtinen, born 1947Assistant DirectorSeparate projectsEmployed by the HYY Group since 1978
REAL ESTATE DIVISION
Yrjö Herva, born 1961DirectorKaivopiha LtdHYY Real EstateEmployed by the HYY Group since 1990
Jukka Leinonen, born 1957Assistant DirectorKaivopiha LtdTechnical and building superintendent operationsEmployed by the HYY Group since 1995
TRAVEL GROUP
Mogens Jønck, born 1953Managing Director and Chief Executive OfficerKILROY travels International A/SChair of the Boards of Directors of the subsidiaries of KILROY travelsInternational A/SEmployed by the HYY Group since 1999
Anne-Marie Hertz, born 1958 Director, Corporate Financial and IT Services KILROY travels International A/SEmployed by the HYY Group since 2000
Dagmar Thomsen, born 1954Director, Corporate Human Resources,Airline Relations and MarketingKILROY travels International A/SEmployed by the HYY Group since 1988
Peter Cramon, born 1970Director, e-business / Business DevelopmentKILROY travels International A/SEmployed by the HYY Group since 2001
Claus H. Hejlesen, born 1962Director: Group travel Managing Director: TEAM TRAVEL A/SEmployed by the HYY Group since 1990
Annelise Dam Larsen, born 1956Director: Friendship travelManaging Director: Benns Rejser A/S,Benns Resor AB, Benns Reiser ASEmployed by the HYY Group since 1999
Lars Kornbech, born 1967Managing Director: KILROY travels Denmark A/SEmployed by the HYY Group since 2000
Åsne Trommald, born 1960Managing Director: KILROY travels Norway A/SEmployed by the HYY Group since 1997
Monica Murphy, born 1959Managing Director: KILROY travels Sweden ABEmployed by the HYY Group since 1991
Leena Dahl-Mäkinen, born 1954Managing Director: OY KILROY travels Finland ABEmployed by the HYY Group since 1991
Bart C.M. Govaert, born 1965Managing Director: KILROY travels Netherlands B.V.Employed by the HYY Group since 2001
Michael Kirk-Jensen, born 1964Managing Director: KILROY travelsGermany - ARTU - GmbHEmployed by the HYY Group since 1999
Luis Almonacid, born 1946Managing Director: KILROY travels Spain S.A.Employed by the HYY Group since 1989
RESTAURANTS, OY ACADEMICA HOTELS LTD
Marjo Berglund, born 1964Director: Oy UniCafe Ab, Oy Vanha Ylioppilastalo AbManaging Director: Oy Academica Hotels LtdEmployed by the HYY Group since 1992
OY UNICARD AB, UNIVERSITY PRESS FINLAND LTD
Arja Kosonen, born 1964Assistant Director: University Press Finland Ltd, Oy UniCard AbEmployed by the HYY Group since 1991
MembersSari Havukainen, born 1971a member of the Board of Directorssince 1999
Hanna Järvinen, born 1974a member of the Board of Directorssince 2000
Jukka Pajarinen, born 1975a member of the Board of Directorssince 2000
Jaakko Hietala, born 1966Fennica Oy Attorneys-at-Law, partnera member of the Board of Directorsfrom 1992 to 1995 and since 2000
Mika Ihamuotila, born 1964Sampo Oyj, Executive Vice Presidenta member of the Board of Directorssince 1996
Kerstin Rinne, born 1950SanomaWSOY Oyj, Director in chargeof legal affairs and planning a member of the Board of Directorssince 1999
Harri Tanhuanpää, born 1968Rettig Oy Ab, Group Treasurera member of the Board of Directorssince 1993
Personnel RepresentativeKaisa Siitonen, born 1960a member of the Board of Directorssince 1997
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 54
54 555554
BOARD OF DIRECTORS OF THE HYY GROUP
The Board of Directors of the HYY Groupacts as the Board of Directors of the Group’sparent corporation – the Real Estate Fundsof HYY – and of HYY Group Ltd and itscorporate group. The Board of Directorshas 6 to 9 members. A personnel repre-sentative has the right to attend and beheard at meetings. About half of themembers of the Board are elected fromamongst the students who are membersof the Student Union and the rest fromamongst external experts. The Chair iselected from amongst the members of theBoard of the Student Union. The “studentmembers”, including the Chair, have themajority vote when they are unanimous.Expert members are elected for two-yearterms, while the other members areelected for terms of one year.
The main task of the Board of Directorsof the HYY Group is to direct the opera-tions of the Group in accordance with legislation, the rules of the Student Unionand the Articles of Association of HYYGroup Ltd. Matters which must be subor-dinated to processing and approval by theGroup’s Board of Directors include, but are not limited to, decisions to establish,acquire, merge, terminate or sell sub-sidiaries, competition strategies, operatingplans, target budgets, significant invest-ments, financial statement plans and pro-posals for the distribution of profit. TheGroup’s Board of Directors oversees theoperations of the Boards of Directors ofcompanies which are part of HYY GroupLtd’s corporate group. The Group’s Boardof Directors attends to supporting, super-vising and assessing management.
ChairJukka Nohteri, born 1975a member of the Board of Directorssince 1999
Deputy Chair Hannes Saarinen, born 1975a member of the Board of Directorssince 1999
BOARD OF DIRECTORS OF KILROY TRAVELS INTERNATIONAL A/S25.4.2001The tasks of the Board of Directors havebeen specified in the Danish CompaniesAct and the standing procedures requiredby the Act. In addition, the principles tobe applied in the structure, duties andwork of the Board of Directors have beenagreed upon in the shareholder agree-ment made between the principal owners.The Chair and Deputy Chair of the Boardof Directors comprise the Executive Board.
ChairTapio Kiiskinen, born 1947President and CEO,HYY Group
Deputy ChairChristian Frigast, born 1951Managing Director and CEO, Axcel IndustriInvestor a.s.
MembersJohn Dueholm, born 1951Group Chief Operating Officer,Group 4 Falck A/S
Børge Faaborg, born 1939Former Managing Director and CEO,KILROY travels International A/S
Kaj Storbacka, born 1957Founder and Chairman of the Boardof Directors of CRM Group Ltd.
Claus Warming, born 1945Chairman of the Board of Directors ofSportgoods Holding A/S
Odd Wilhelmsen, born 1946Financial Manager,Studentsamskipnaden i Oslo
Personnel RepresentativeRobert Doeleman, born 1950
Board of Directors of the HYY GroupTop row, from left: Kerstin Rinne, MikaIhamuotila, Harri Tanhuanpää, Jaakko HietalaMiddle row, from left: Kaisa Siitonen, HannesSaarinen, Jukka Pajarinen, Sari HavukainenBottom row, from left: Jukka Nohteri, Hanna Järvinen
THE HYY GROUP’S PRESIDENT AND CEO AND EXECUTIVEMANAGEMENT
The HYY Group’s current President and CEOacts as the financial director of the StudentUnion (with his responsibilities includingthe Real Estate Funds of HYY) and also actsas the President and CEO of HYY GroupLtd and its corporate group.
The members of the executive man-agement of the Group’s Finnish part includethe Group’s President and CEO as Chair,the Group’s Vice President, the Directorsof the business divisions and AssistantDirectors responsible for units of their own.The Group’s subgroup, KILROY travelsInternational A/S, has its own executivemanagement.
HYY GROUP’S EXECUTIVEMANAGEMENT
Tapio Kiiskinen, born 1947President and Chief Executive OfficerChair of the Boards of Directors: KILROY travels International A/S, Oy UniCard Ab, University PressFinland Ltd, Oy Academica Hotels LtdFinancial Director of the Student UnionEmployed by the Student Union andthe HYY Group since 1969
Linnea Meder, born 1947Vice PresidentHYY Group LtdCorporate Finance and Internal Auditing Managing Director: Oy UniCard Ab,University Press Finland LtdEmployed by the Student Union andthe HYY Group since 1973
HYY GROUP LTD
Liisa Lehtinen, born 1947Assistant DirectorSeparate projectsEmployed by the HYY Group since 1978
REAL ESTATE DIVISION
Yrjö Herva, born 1961DirectorKaivopiha LtdHYY Real EstateEmployed by the HYY Group since 1990
Jukka Leinonen, born 1957Assistant DirectorKaivopiha LtdTechnical and building superintendent operationsEmployed by the HYY Group since 1995
TRAVEL GROUP
Mogens Jønck, born 1953Managing Director and Chief Executive OfficerKILROY travels International A/SChair of the Boards of Directors of the subsidiaries of KILROY travelsInternational A/SEmployed by the HYY Group since 1999
Anne-Marie Hertz, born 1958 Director, Corporate Financial and IT Services KILROY travels International A/SEmployed by the HYY Group since 2000
Dagmar Thomsen, born 1954Director, Corporate Human Resources,Airline Relations and MarketingKILROY travels International A/SEmployed by the HYY Group since 1988
Peter Cramon, born 1970Director, e-business / Business DevelopmentKILROY travels International A/SEmployed by the HYY Group since 2001
Claus H. Hejlesen, born 1962Director: Group travel Managing Director: TEAM TRAVEL A/SEmployed by the HYY Group since 1990
Annelise Dam Larsen, born 1956Director: Friendship travelManaging Director: Benns Rejser A/S,Benns Resor AB, Benns Reiser ASEmployed by the HYY Group since 1999
Lars Kornbech, born 1967Managing Director: KILROY travels Denmark A/SEmployed by the HYY Group since 2000
Åsne Trommald, born 1960Managing Director: KILROY travels Norway A/SEmployed by the HYY Group since 1997
Monica Murphy, born 1959Managing Director: KILROY travels Sweden ABEmployed by the HYY Group since 1991
Leena Dahl-Mäkinen, born 1954Managing Director: OY KILROY travels Finland ABEmployed by the HYY Group since 1991
Bart C.M. Govaert, born 1965Managing Director: KILROY travels Netherlands B.V.Employed by the HYY Group since 2001
Michael Kirk-Jensen, born 1964Managing Director: KILROY travelsGermany - ARTU - GmbHEmployed by the HYY Group since 1999
Luis Almonacid, born 1946Managing Director: KILROY travels Spain S.A.Employed by the HYY Group since 1989
RESTAURANTS, OY ACADEMICA HOTELS LTD
Marjo Berglund, born 1964Director: Oy UniCafe Ab, Oy Vanha Ylioppilastalo AbManaging Director: Oy Academica Hotels LtdEmployed by the HYY Group since 1992
OY UNICARD AB, UNIVERSITY PRESS FINLAND LTD
Arja Kosonen, born 1964Assistant Director: University Press Finland Ltd, Oy UniCard AbEmployed by the HYY Group since 1991
MembersSari Havukainen, born 1971a member of the Board of Directorssince 1999
Hanna Järvinen, born 1974a member of the Board of Directorssince 2000
Jukka Pajarinen, born 1975a member of the Board of Directorssince 2000
Jaakko Hietala, born 1966Fennica Oy Attorneys-at-Law, partnera member of the Board of Directorsfrom 1992 to 1995 and since 2000
Mika Ihamuotila, born 1964Sampo Oyj, Executive Vice Presidenta member of the Board of Directorssince 1996
Kerstin Rinne, born 1950SanomaWSOY Oyj, Director in chargeof legal affairs and planning a member of the Board of Directorssince 1999
Harri Tanhuanpää, born 1968Rettig Oy Ab, Group Treasurera member of the Board of Directorssince 1993
Personnel RepresentativeKaisa Siitonen, born 1960a member of the Board of Directorssince 1997
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 54
56 57
RESTAURANTS
Oy UniCafe Ab
OfficeP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4271Fax +358 9 1311 4346www.unicafe.fi
Restaurants
Biokeskus (Bio Centre)Viikinkaari 9FIN-00710 HELSINKITel. +358 9 1915 9526
DomusHietaniemenkatu 14FIN-00100 HELSINKITel. +358 9 454 3538
Eläinmuseo (Animal Museum)Pohj. Rautatiekatu 13FIN-00100 HELSINKITel. +358 9 1912 8807
Infokeskus Korona (Korona Information Centre)
Viikinkaari 11FIN-00710 HELSINKITel. +358 9 1915 8768
Kasvitiede (Botany)Kaisaniemenranta 2FIN-00170 HELSINKITel. +358 9 1912 4468
Klubikahvila (Club Café)Unioninkatu 38FIN-00170 HELSINKITel. +358 9 1912 4309
KumpulaP.O. Box 55 (A.I. Virtasen aukio 1)FIN-00014 HELSINGIN YLIOPISTOTel. +358 9 1915 0109
Käsityö (Handicrafts)Helsinginkatu 34FIN-00530 HELSINKITel. +358 9 191 7051
LadonlukkoLatokartanonkaari 9Viikki departmentFIN-00710 HELSINKITel. +358 9 1915 8042
KILROY travels Trondheim ASTel. +47 23 10 23 00
Jomfrugata 1N-7011 TRONDHEIM
Kolbjørn Hejes vei 4Gamle Kjemi NTHBoks 21N-7491 TRONDHEIM
KILROY travels Spain S.A.Tel. +34 915 44 70 21Hilarion Eslava 18E-28015 MADRID
KILROY travels Sweden ABTel. +46 8 402 93 07
Kungsgatan 4Box 7144S-103 87 STOCKHOLM
Sveavägen 71S-113 50 STOCKHOLM
Universitetsvägen 9(Allhuset Frescati), Box 50004S-104 05 STOCKHOLM
Vasagatan 7S-411 24 GOTHENBURG
Klostergatan 31S-582 23 LINKÖPING
Bytaregränd, Klostergatan 14S-222 22 LUND
Engelbrektsgatan 18S-211 33 MALMÖ
Kungsgatan 71, Box 327S-901 07 UMEÅ
Bredgränd 3S-753 20 UPPSALA
Rudbecksgatan 16S-702 23 ÖREBRO
KILROY travels Germany - ARTU -GmbH
Tel. +49 30 310 00 40
Hardenbergstraße 9 CharlottenburgD-10623 BERLIN
Georgenstraße 3 MitteD-10117 BERLIN
Takustraße 47 DahlemD-14195 BERLIN
Augustusplatz 9D-04109 LEIPZIG
Zellescher Weg 21D-01217 DRESDEN
KILROY travels Netherlands B.V.Tel. +31 0 524 5100
Singel 413-415NL-1012 WP AMSTERDAM
Spuistraat 281NL-1012 VR AMSTERDAM
KILROY travels Norway ASTel. +47 23 10 23 00
Nedre Slottsgate 23N-0157 OSLO
UniversitetssentretBox 54, BlindernN-0313 OSLO
Vaskerelven 16N-5014 BERGEN
Tollbodgata 15N-4611 KRISTIANSAND
Breigata 11N-4006 STAVANGER
Strandgata 36N-9008 TROMSØ
B U S I N E S S LO CAT I O N S
TRAVEL GROUP
www.kilroytravels.com
KILROY travels International A/STel. +45 33 48 07 00Knabrostraede 8DK-1210 COPENHAGEN K
KILROY travels Denmark A/STel. +45 70 15 40 15
Skindergade 28DK-1159 COPENHAGEN K
Falkoner Allé 14DK-2000 FREDERIKSBERG
Østerbrogade 100DK-2100 COPENHAGEN Ø
Kongensgade 8DK-6700 ESBJERG
Nørregade 51DK-7500 HOLSTEBRO
Vestergade 100DK-5000 ODENSE C
Fredensgade 40DK-8100 AARHUS C
Østeraagade 23DK-9000 AALBORG
OY KILROY travels Finland ABTel. +358 203 545769
Kaivokatu 10 DFIN-00100 HELSINKI
Forum KauppakeskusVapaudenkatu 49-51FIN-40100 JYVÄSKYLÄ
Pakkahuoneenkatu 8FIN-90100 OULU
Hämeenkatu 17FIN-33200 TAMPERE
Eerikinkatu 2FIN-20100 TURKU
Hartmaninkuja 6FIN-65100 VAASA
KILROY group travel A/STel. +45 33 48 06 00
Nygade 3DK-1164 COPENHAGEN K
Nørregade 51DK-7500 HOLSTEBRO
TEAM TRAVEL A/Swww.teamtravel.dkTel. +45 70 10 60 61Tomsgårdsvej 15DK-2400 COPENHAGEN NV
Benns Rejser A/Swww.benns.comTel. +45 97 42 50 00
Nørregade 51DK-7500 HOLSTEBRO
Frederiksberg Allé 18-20DK-1820 FREDERIKSBERG C
Benns Resor ABTel. +46 31 774 00 25
Kastellgatan 17, Box 7124S-402 33 GOTHENBURG
Roslagsgatan 35-37, Box 19175S-104 32 STOCKHOLM
Benns Reiser ASTel. +47 23 32 66 30Wergelandsveien 7N-0167 OSLO
PARENT COMPANY
HYY Group Ltd
Group Management and Internal ServicesP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4225Fax +358 9 1311 4306www.hyy.fi
REAL ESTATE DIVISION
Kaivopiha Ltd
Kaivopiha Service Office Kaivotalo, Kaivokatu 10 CFIN-00100 HELSINKITel. +358 9 1311 4250Fax +358 9 601 020www.kaivopiha.fi
HYY Real Estate
City Centre Property/ Kaivopiha Commercial BuildingLeppäsuo Property/Domus Academica
P.O. Box 1099Mannerheimintie 5 CFIN-00101 HELSINKIwww.kaivopiha.fi
Domus Academica Dormitory Office The Housing Office of the Foundationfor Student Housing in the HelsinkiRegion (HOAS)PL 799, Pohjoinen Rautatiekatu 29FIN-00100 HELSINKITel. +358 9 549 900Fax +358 9 5499 0345www.hoas.fi
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 56
56 57
RESTAURANTS
Oy UniCafe Ab
OfficeP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4271Fax +358 9 1311 4346www.unicafe.fi
Restaurants
Biokeskus (Bio Centre)Viikinkaari 9FIN-00710 HELSINKITel. +358 9 1915 9526
DomusHietaniemenkatu 14FIN-00100 HELSINKITel. +358 9 454 3538
Eläinmuseo (Animal Museum)Pohj. Rautatiekatu 13FIN-00100 HELSINKITel. +358 9 1912 8807
Infokeskus Korona (Korona Information Centre)
Viikinkaari 11FIN-00710 HELSINKITel. +358 9 1915 8768
Kasvitiede (Botany)Kaisaniemenranta 2FIN-00170 HELSINKITel. +358 9 1912 4468
Klubikahvila (Club Café)Unioninkatu 38FIN-00170 HELSINKITel. +358 9 1912 4309
KumpulaP.O. Box 55 (A.I. Virtasen aukio 1)FIN-00014 HELSINGIN YLIOPISTOTel. +358 9 1915 0109
Käsityö (Handicrafts)Helsinginkatu 34FIN-00530 HELSINKITel. +358 9 191 7051
LadonlukkoLatokartanonkaari 9Viikki departmentFIN-00710 HELSINKITel. +358 9 1915 8042
KILROY travels Trondheim ASTel. +47 23 10 23 00
Jomfrugata 1N-7011 TRONDHEIM
Kolbjørn Hejes vei 4Gamle Kjemi NTHBoks 21N-7491 TRONDHEIM
KILROY travels Spain S.A.Tel. +34 915 44 70 21Hilarion Eslava 18E-28015 MADRID
KILROY travels Sweden ABTel. +46 8 402 93 07
Kungsgatan 4Box 7144S-103 87 STOCKHOLM
Sveavägen 71S-113 50 STOCKHOLM
Universitetsvägen 9(Allhuset Frescati), Box 50004S-104 05 STOCKHOLM
Vasagatan 7S-411 24 GOTHENBURG
Klostergatan 31S-582 23 LINKÖPING
Bytaregränd, Klostergatan 14S-222 22 LUND
Engelbrektsgatan 18S-211 33 MALMÖ
Kungsgatan 71, Box 327S-901 07 UMEÅ
Bredgränd 3S-753 20 UPPSALA
Rudbecksgatan 16S-702 23 ÖREBRO
KILROY travels Germany - ARTU -GmbH
Tel. +49 30 310 00 40
Hardenbergstraße 9 CharlottenburgD-10623 BERLIN
Georgenstraße 3 MitteD-10117 BERLIN
Takustraße 47 DahlemD-14195 BERLIN
Augustusplatz 9D-04109 LEIPZIG
Zellescher Weg 21D-01217 DRESDEN
KILROY travels Netherlands B.V.Tel. +31 0 524 5100
Singel 413-415NL-1012 WP AMSTERDAM
Spuistraat 281NL-1012 VR AMSTERDAM
KILROY travels Norway ASTel. +47 23 10 23 00
Nedre Slottsgate 23N-0157 OSLO
UniversitetssentretBox 54, BlindernN-0313 OSLO
Vaskerelven 16N-5014 BERGEN
Tollbodgata 15N-4611 KRISTIANSAND
Breigata 11N-4006 STAVANGER
Strandgata 36N-9008 TROMSØ
B U S I N E S S LO CAT I O N S
TRAVEL GROUP
www.kilroytravels.com
KILROY travels International A/STel. +45 33 48 07 00Knabrostraede 8DK-1210 COPENHAGEN K
KILROY travels Denmark A/STel. +45 70 15 40 15
Skindergade 28DK-1159 COPENHAGEN K
Falkoner Allé 14DK-2000 FREDERIKSBERG
Østerbrogade 100DK-2100 COPENHAGEN Ø
Kongensgade 8DK-6700 ESBJERG
Nørregade 51DK-7500 HOLSTEBRO
Vestergade 100DK-5000 ODENSE C
Fredensgade 40DK-8100 AARHUS C
Østeraagade 23DK-9000 AALBORG
OY KILROY travels Finland ABTel. +358 203 545769
Kaivokatu 10 DFIN-00100 HELSINKI
Forum KauppakeskusVapaudenkatu 49-51FIN-40100 JYVÄSKYLÄ
Pakkahuoneenkatu 8FIN-90100 OULU
Hämeenkatu 17FIN-33200 TAMPERE
Eerikinkatu 2FIN-20100 TURKU
Hartmaninkuja 6FIN-65100 VAASA
KILROY group travel A/STel. +45 33 48 06 00
Nygade 3DK-1164 COPENHAGEN K
Nørregade 51DK-7500 HOLSTEBRO
TEAM TRAVEL A/Swww.teamtravel.dkTel. +45 70 10 60 61Tomsgårdsvej 15DK-2400 COPENHAGEN NV
Benns Rejser A/Swww.benns.comTel. +45 97 42 50 00
Nørregade 51DK-7500 HOLSTEBRO
Frederiksberg Allé 18-20DK-1820 FREDERIKSBERG C
Benns Resor ABTel. +46 31 774 00 25
Kastellgatan 17, Box 7124S-402 33 GOTHENBURG
Roslagsgatan 35-37, Box 19175S-104 32 STOCKHOLM
Benns Reiser ASTel. +47 23 32 66 30Wergelandsveien 7N-0167 OSLO
PARENT COMPANY
HYY Group Ltd
Group Management and Internal ServicesP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4225Fax +358 9 1311 4306www.hyy.fi
REAL ESTATE DIVISION
Kaivopiha Ltd
Kaivopiha Service Office Kaivotalo, Kaivokatu 10 CFIN-00100 HELSINKITel. +358 9 1311 4250Fax +358 9 601 020www.kaivopiha.fi
HYY Real Estate
City Centre Property/ Kaivopiha Commercial BuildingLeppäsuo Property/Domus Academica
P.O. Box 1099Mannerheimintie 5 CFIN-00101 HELSINKIwww.kaivopiha.fi
Domus Academica Dormitory Office The Housing Office of the Foundationfor Student Housing in the HelsinkiRegion (HOAS)PL 799, Pohjoinen Rautatiekatu 29FIN-00100 HELSINKITel. +358 9 549 900Fax +358 9 5499 0345www.hoas.fi
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 56
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Overall result Profit before taxes and minority interest- taxes +/- adjustment of exchange rate differences
Return on investment (ROI), % Net profit + financing expenses + taxes x 100Balance sheet total – non-interest-bearing liabilities (average)
Return on equity, % Net profit x 100Shareholders' equity (average)
Equity ratio, % Shareholders' equity + minority interest + reserves x 100Balance sheet total - advance payments
Other key indicators
Return on equity, % Net profit + financing expenses + taxes x 100if revaluation of land areas Balance sheet total + revaluation contingency - is realized 1) non-interest-bearing liabilities (average)
Equity ratio, if revaluation Shareholders' equity + minority interest + reserves +of land areas is included, % 2) revaluation contingency x 100
Balance sheet total – advance payments + revaluation contingency
Security ratio Security value of the securable assetsPledges, mortgages and other guarantees
Market value of real estate The discounted present value of the net rental income receivable in the future
Income return Net rental income as a percentage of the market value of real estate at the beginning of the financial year
Capital return Change in the market value as a percentage of the market value at the beginning of the year. Investments activated during the report year are deducted from the change in the market value.
Total return The sum of the income return and the capital return for the report year
Tied-up risk by division Owner's total risk = equity and quasi-equity investments + loans granted + collateral provided as pledges and guarantees given
5958
OTHER COMPANIES
University Press Finland Ltdwww.yliopistokustannus.fi
Gaudeamus Publishing HouseP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4280Fax +358 9 1311 4317
Otatieto Publishing HouseP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4280Fax +358 9 1311 4317
Oy Academica Hotels Ltd
Hostel AcademicaHietaniemenkatu 14FIN-00100 HELSINKITel. +358 9 1311 4334Fax +358 9 441 201www.hyy.fi/hostel
Oy UniCard Ab
UniCard OfficeP.O. Box 1099, Mannerheimintie 5Kaivopiha, HansakäytäväFIN-00101 HELSINKITel. +358 9 1311 4272Fax +358 9 1311 4306www.unicard.fi
MeilahtiHaartmaninkatu 3FIN-00290 HELSINKITel. +358 9 241 8775
Metsätalo (Forest Building)Fabianinkatu 39FIN-00170 HELSINKITel. +358 9 191 7603
NilsiäNilsiänkatu 3FIN-00510 HELSINKITel. +358 9 1915 0960
Opettaja (Teachers' Restaurant)Ratakatu 6FIN-00120 HELSINKITel. +358 9 1912 8108
Physicum (Physics)Väinö Auerin katu 11FIN-00560 HELSINKITel. +358 9 1915 0720
PorthaniaYliopistonkatu 3FIN-00100 HELSINKITel. +358 9 1912 2558
Päärakennus (Main Building)Fabianinkatu 33FIN-00170 HELSINKITel. +358 9 1912 2407
RuskeasuoKytösuontie 9FIN-00300 HELSINKITel. +358 9 1912 7429
Soc&komTopeliuksenkatu 16FIN-00250 HELSINKITel. +358 9 1912 8434
StobeliaFabianinkatu 37FIN-00170 HELSINKITel. +358 9 1912 4307
VallilaTeollisuuskatu 23-25FIN-00510 HELSINKITel. +358 9 1914 4291
Valtiotiede (Social Sciences)Unioninkatu 37FIN-00170 HELSINKITel. +358 9 1912 4836
VuorikatuVuorikatu 20FIN-00100 HELSINKITel. +358 9 622 4369
Yliopiston kirjasto (University Library)Unioninkatu 36FIN-00170 HELSINKITel. +358 9 1912 2748
Ylioppilasaukio (Ylioppilasaukio Square)Mannerheimintie 3 BFIN-00100 HELSINKITel. +358 9 260 9491
Oy Vanha Ylioppilastalo Ab
Restaurant VanhaMannerheimintie 3 B FIN-00100 HELSINKITel. +358 9 1311 4368 / Beercafe+358 9 1311 4367 / Sales Fax +358 9 1311 4236www.vanha.fi
B U S I N E S S LO CAT I O N S
The key figures have been calculated inaccordance with the conventions of theFinnish Committee for Corporate Analysis,which were renewed in 1999.
The market value, annual capital return andtotal return of the main items of real estatehave been calculated in accordance with the conventions of the Finnish Institute ofReal Estate Economics.
1) Income return without forthcoming capitalreturn at the beginning of the year, if therevaluation had been realized at the end ofthe previous year. Does not indicate the real-ized overall result or return on investment.
2) In the officially audited financial state-ments, the requirements for revaluationcontingency under the Finnish AccountingAct are added to the shareholders' equity in the capital structure review.
F O R M U L A S F O R K E Y I N D I CATO R S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 58
Calculated in accordance with the conventions of the Finnish Committee for Corporate Analysis
Overall result Profit before taxes and minority interest- taxes +/- adjustment of exchange rate differences
Return on investment (ROI), % Net profit + financing expenses + taxes x 100Balance sheet total – non-interest-bearing liabilities (average)
Return on equity, % Net profit x 100Shareholders' equity (average)
Equity ratio, % Shareholders' equity + minority interest + reserves x 100Balance sheet total - advance payments
Other key indicators
Return on equity, % Net profit + financing expenses + taxes x 100if revaluation of land areas Balance sheet total + revaluation contingency - is realized 1) non-interest-bearing liabilities (average)
Equity ratio, if revaluation Shareholders' equity + minority interest + reserves +of land areas is included, % 2) revaluation contingency x 100
Balance sheet total – advance payments + revaluation contingency
Security ratio Security value of the securable assetsPledges, mortgages and other guarantees
Market value of real estate The discounted present value of the net rental income receivable in the future
Income return Net rental income as a percentage of the market value of real estate at the beginning of the financial year
Capital return Change in the market value as a percentage of the market value at the beginning of the year. Investments activated during the report year are deducted from the change in the market value.
Total return The sum of the income return and the capital return for the report year
Tied-up risk by division Owner's total risk = equity and quasi-equity investments + loans granted + collateral provided as pledges and guarantees given
5958
OTHER COMPANIES
University Press Finland Ltdwww.yliopistokustannus.fi
Gaudeamus Publishing HouseP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4280Fax +358 9 1311 4317
Otatieto Publishing HouseP.O. Box 1099, Mannerheimintie 5 CFIN-00101 HELSINKITel. +358 9 1311 4280Fax +358 9 1311 4317
Oy Academica Hotels Ltd
Hostel AcademicaHietaniemenkatu 14FIN-00100 HELSINKITel. +358 9 1311 4334Fax +358 9 441 201www.hyy.fi/hostel
Oy UniCard Ab
UniCard OfficeP.O. Box 1099, Mannerheimintie 5Kaivopiha, HansakäytäväFIN-00101 HELSINKITel. +358 9 1311 4272Fax +358 9 1311 4306www.unicard.fi
MeilahtiHaartmaninkatu 3FIN-00290 HELSINKITel. +358 9 241 8775
Metsätalo (Forest Building)Fabianinkatu 39FIN-00170 HELSINKITel. +358 9 191 7603
NilsiäNilsiänkatu 3FIN-00510 HELSINKITel. +358 9 1915 0960
Opettaja (Teachers' Restaurant)Ratakatu 6FIN-00120 HELSINKITel. +358 9 1912 8108
Physicum (Physics)Väinö Auerin katu 11FIN-00560 HELSINKITel. +358 9 1915 0720
PorthaniaYliopistonkatu 3FIN-00100 HELSINKITel. +358 9 1912 2558
Päärakennus (Main Building)Fabianinkatu 33FIN-00170 HELSINKITel. +358 9 1912 2407
RuskeasuoKytösuontie 9FIN-00300 HELSINKITel. +358 9 1912 7429
Soc&komTopeliuksenkatu 16FIN-00250 HELSINKITel. +358 9 1912 8434
StobeliaFabianinkatu 37FIN-00170 HELSINKITel. +358 9 1912 4307
VallilaTeollisuuskatu 23-25FIN-00510 HELSINKITel. +358 9 1914 4291
Valtiotiede (Social Sciences)Unioninkatu 37FIN-00170 HELSINKITel. +358 9 1912 4836
VuorikatuVuorikatu 20FIN-00100 HELSINKITel. +358 9 622 4369
Yliopiston kirjasto (University Library)Unioninkatu 36FIN-00170 HELSINKITel. +358 9 1912 2748
Ylioppilasaukio (Ylioppilasaukio Square)Mannerheimintie 3 BFIN-00100 HELSINKITel. +358 9 260 9491
Oy Vanha Ylioppilastalo Ab
Restaurant VanhaMannerheimintie 3 B FIN-00100 HELSINKITel. +358 9 1311 4368 / Beercafe+358 9 1311 4367 / Sales Fax +358 9 1311 4236www.vanha.fi
B U S I N E S S LO CAT I O N S
The key figures have been calculated inaccordance with the conventions of theFinnish Committee for Corporate Analysis,which were renewed in 1999.
The market value, annual capital return andtotal return of the main items of real estatehave been calculated in accordance with the conventions of the Finnish Institute ofReal Estate Economics.
1) Income return without forthcoming capitalreturn at the beginning of the year, if therevaluation had been realized at the end ofthe previous year. Does not indicate the real-ized overall result or return on investment.
2) In the officially audited financial state-ments, the requirements for revaluationcontingency under the Finnish AccountingAct are added to the shareholders' equity in the capital structure review.
F O R M U L A S F O R K E Y I N D I CATO R S
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 58
61
Design: Incognito DesignPhotos: Sami LuukkanenRepro and printing: Lönnberg Painot OyPaper: Galerie Art and Terreus
The Annual Report is published in English and Finnish. To order,telephone +358 9 1311 4288 or email [email protected].
HYY GroupP.O. Box 109900101 HelsinkiFinlandwww.hyy.fi
39871_HYY_ENKKU 30.5.2001 11:28 Sivu 60
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